International Business Following International Management Functions

Managing International Business
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Managing International Business
Introduction
International business refers to the activities and transactions between two or more countries. It involves the exchange of goods, services, technology, and capital across borders and encompasses various aspects of business, such as marketing, finance, operations, and human resources (Aon, 2021). International business is a complex and dynamic field that requires organizations to adapt to different countries' cultural, political, and economic differences. Managing a global business is essential for several reasons.
It allows organizations to tap into new markets and expand their customer base beyond domestic borders. By going international, companies can increase their revenues, reduce dependence on a single market, and gain a competitive advantage. Secondly, managing international business enables organizations to access resources and talent that may not be available in their home country (Biegelman & Biegelman, 2019). For example, a company that wants to develop a new product may need to source raw materials from different countries or hire specialists with expertise in specific areas. The company can leverage the knowledge and skills of professionals from diverse backgrounds and improve its innovation capabilities. Thirdly, managing international business helps organizations mitigate risks and diversify their portfolios (Biegelman & Biegelman, 2019). By operating in multiple countries, companies can reduce their exposure to political, economic, and social risks that may affect their operations in a single market. For instance, if a company's sales in one country decline due to a recession or a change in government policies, it can offset the losses by increasing its sales in other countries. Managing international business promotes cultural exchange and understanding (Bower & Gilbert, 2018). By interacting with people from different countries and cultures, organizations can learn about new perspectives, values, and customs and develop a more global mindset. This can help companies to create products and services that resonate with diverse audiences and foster a more inclusive and respectful workplace.
International business is an essential component of the global economy, and managing it effectively is crucial for the success and growth of organizations. By embracing international business, companies can expand their reach, access new resources and talent, mitigate risks, and promote cultural exchange (Business Roundtable, 2019). As such, international business presents opportunities and challenges and requires organizations to adopt a strategic and adaptive approach to succeed in a rapidly changing global landscape.
Managing Political Risk
Political risk refers to the risks arising from political decisions, policies, and events that can impact an organization's financial, operational, and reputational aspects. Political risk is a complex and dynamic phenomenon that affects organizations in various ways, and it can be challenging to quantify and manage (CIPD, 2021). Multiple factors, including changes in government policies, geopolitical tensions, regu...