International Business and Cultural Differences in Management

International Business
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PART I
Proliferation of electronic communication has led to increased interconnectedness in the world making economic boundaries blurred. In a more globalized world, there is increased ease in distribution of goods and resources through global supply chains and distribution networks. In any case, financial institutions mostly operate at the global level because of business networks highlighting on the role of international business. In one way or the other, people will be affected by international business because of economic and political impact on the world. The case in point is the global financial crisis of 2008-2009, which affected international business and local economies in many countries. Thus, the external environment has a direct impact on the local economy of countries as economic ties have a ripple effect on the global market. The United Arab Emirate’s economy is not insulated from the global market as experienced by the real estate market bubble in Dubai after the global recession (Huber, 2010).
There is no single culturally approach in international business, but trade relations between and among countries and regional blocs have become important for countries economic well being (Wang, 2010). Thus, understanding international business will, allow one to make strategic decisions in light of globalization and changing business perspectives. In essence, increased interconnectedness among countries has led to integration of economic ties, but there are still cultural gaps that make it hard to do business among trading partners. Businesses typically expand and have a global presence, and Emiratis can not solely rely on the local market to look for business opportunities. In any case, local businesses, with branches in other countries are likely to pay higher wages and salaries than local companies without a global reach.
Part II
International business can be challenging especially when faced with cultural differences, and the process of adapting the managerial style to suit the host country is also not straight forward. Thus, for companies venturing into the Indian market it is necessary to prepare staff adequatel...