Managing International Business

Managing International Business
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Managing International Business
The management of international companies has become more intricate in the present era of globalized business surroundings, with markets and nations becoming more interconnected. Businesses face challenges navigating different countries' social, political, and cultural landscapes. Key areas of concern for international firms include political risk, ethical behaviour, and human resource management. This essay explores and analyses the diverse strategies employed to mitigate political risk in the international domain, drawing comparisons and distinctions between them. Moreover, this paper will scrutinize the purpose and implications of two ethical theories for managing ethics in international business. Additionally, the essay aims to evaluate and differentiate several staffing models, including the ethnocentric, polycentric, and geocentric approaches, and the recruitment of women managers, identifying their strengths and weaknesses. The essay comprehensively explains the intricacies of conducting global business operations by delving into these issues.
Managing political risk
Based on the findings of Buckley and colleagues (2018), political risk is defined as the potential hazards and uncertainties stemming from political elements within a specific country or region. Managing political risk is a vital function that modern international companies must undertake to protect their investments and interests. These risks arise due to events or policy changes in political regimes that may negatively impact a company's profitability or investment management. Implementing political risk management tactics is essential for corporations that operate in foreign nations. These strategies may vary depending on the nature of the political risk and the organization's business model. This essay will discuss and compare the strategies employed by international firms to manage political risks and provide examples for each strategy.
One strategy for managing political risk is to establish a contingency plan. A contingency plan is a set of procedures and policies that firms develop to respond to unexpected events or changes in the political environment. The plan should include a crisis management team, an emergency response plan, and communication protocols. The crisis management team is responsible for assessing the situation, determining the appropriate response, and implementing the plan. The emergency response plan outlines the actions that the firm will take to ensure the safety of its employees and assets. Communication protocols define how the firm will communicate with its employees, stakeholders, and the media during a crisis.
For example, (Connick et al., 2007) studied how several multinational corporations managed political risk in emerging markets. They found that many firms developed contingency plans to deal with the risks associated with terrorism, civil unrest, and government instability. For instance, some firms established secure communication channels to contact employees during a crisis. Others set up evacuation plans and safe houses for their employees. ...