How Contemporary International Firms Practice International Management Functions

International Business
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International Business
Introduction
Businesses are operating in an ever-changing business environment. Globalization has exposed businesses to more competition. Companies are forced to adopt better strategies to enhance their competitiveness in the market, otherwise, they would make losses. Globalization contributed to an increase in the number of international businesses that want to venture into foreign markets. International markets operate in different countries, exposing themselves to political risks, ethical dilemmas, and staffing challenges. Despite these strategies, international businesses have to find strategies that allow them to overcome the problems. This essay outlines different approaches for managing political risks in business in multiple countries. It also demonstrates how international businesses can employ ethical theories in their operations. In particular, virtue and deontological ethics are examined. Lastly, the essay explores various staffing approaches for international businesses to help managers identify the most appropriate models for their businesses. Additionally, the issue of the choice of women leaders is outlined concerning international businesses.
Explain and contrast the strategies to manage international political risk.
There are several ways in which international firms practice political risk management. First, these firms conduct a risk assessment to evaluate the political risks involved in trading, working with, and or operating in other countries CITATION Ash17 \l 1033 (Ahuja, Syed, & Wiseman, 2017). The risk assessment involves analyzing the political stability of the governments to understand the political landscape and how it could affect their operations. The political evaluation also encompasses geopolitical tensions, hegemony structures, government policies, and government structure. These are some of the factors that determine the political suitability of operations in foreign countries. The firm can avoid or conform to the government's demands for countries with unfavorable terms. For example, most firms that want to trade or operate in China must recognize Taiwan as a Chinese province instead of an independent state CITATION Hsi09 \l 1033 (Hsieh, 2009). Secondly, international companies audit and analyze the regulatory framework to determine the government’s stand on foreign investors in certain industries. Risk assessment allows firms to determine the potential impact on their business operations and how to navigate the issues.
Some firms choose to diversify their operations across many different countries. This approach leads the companies to minimize the concentration risk of operating in one area or region. Firms that spread their operations to different markets and countries or areas reduce their exposure to political risk associated with a volatile political climate CITATION Bab18 \l 1033 (Mariadoss, 2018). If operations are compromised in one area, country, or region, the entities in other countries help offset the losses realized in that region.
Some companies build alliances with foreign governments to gain favor and do business in the respective countries CITATION InS1...