• One way to protect against fluctuations in currency is to pay suppliers and production costs in the same currency as the one we’re selling in. Market challenges. For instance, American coffee company Starbucks seriously struggled in Australia, where the demand for local, independent cafes and coffee shops vastly outweighed the appeal of the corporate giant. The company was forced to pay a €30,000 fine for a breach of local tourism laws in Barcelona. For instance, will your company be run from one central headquarters? What to say about supply to other nations. Our mission is to provide an online platform to help students to discuss anything and everything about Economics. Part of this task falls to individual countries. In conclusion, the process of international economic integration will continue to move forward. The impact of these challenges on firms, governments, international organisations and civil society, invites the research community to intensify its efforts to supply useful insights, answers and innovative ideas. Economic Unions 5. An obvious risk for international business is political uncertainty and instability. A good rule of thumb is to beware of engaging in any questionable activities, which might be legal but could have future reputational repercussions. Challenges Faced By Managers When They Are Operating in Foreign Countries. There are some unique challenges UK companies may face when doing business in Ethiopia. Do your research and know how different cultural values and norms — such as shaking hands — can and should influence the way you communicate in a professional context. Determining acceptable payment methods and ensuring secure processing must be a central consideration for businesses who seeks to trade internationally. In an unprecedented global health crisis, trade is essential to save lives and livelihoods; and international co-operation is needed to keep trade flowing. Beyond a legal or ethical incentive to be more eco-friendly, establishing environmentally conscious business practices can attract new, forward-thinking consumers to your company. Originally from Michigan in the U.S., she relocated to the U.K. in 2010 to pursue a master’s degree at Hertford College, Oxford. Accepting wire transfers, PayPal payments, and Bitcoin, are other possibilities, with Bitcoin users benefiting from no bank or credit card transaction fees. It helped me gain perspective towards people from different countries such that I can go to any country and start working without any culture shock.” –Mayur Chimurkar, MBA Class of 2014. From tax implications through to trading laws, navigating legal requirements is a central function for any successful international business. For any size company it is becoming much easier to reach new markets, and customers to sell their products, as well as locating vendors. In October 2015, the UK passed the Modern Slavery Act in response to this often-hidden human rights violation. When an individual buys a franchise, he or she purchases the years of experience and the proven operating system of the franchisor. 1Department of Marketing, College of Business Administration, King Saud University Riyadh Kingdom of Saudi Arabia . One franchisee expressed it this way, “What I have learned from the franchisor was worth ten times what I paid for the franchise.” In any new business, much time and money are spent in trial and error, but a proven franchise may eliminate many of those start-up problems, allowing one to open a franchise with little or no previous experience in a give… A number of well-known companies have had to consider adapting the names of their brand or product when launching in a foreign market. On a practical level, if you’re considering expanding your business overseas, it’s important to be aware of the country-specific environmental regulations and issues associated with your industry. The global environment provides opportunities for the international business to sell their products and services globally. Make the most of what your career has to offer with a Masters in International Business from Hult. Given the current global upheaval in political, economic and technological terms, international HR teams are facing an overwhelming array of challenges. Setting the price for your products and services can present challenges when doing business overseas and should be another major consideration of your strategy. Share Your Word File Despite the risk of fluctuating value, the lack of fees is one of the reasons a number of online companies, including WordPress, the Apple App Store, Expedia, and a number of Etsy sellers accept Bitcoin. 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