Solutions to International Business Scenarios and Problems Essay

International business is faced with lots of problems and hindrances. The currency rates are different in the nations and deciding an equal measure is an issue. International accounting standards are different, and the companies are required to adjust to the standards of the nations they will be operating in. The company structure in the global world is different. A business is thus required to make alterations to their structure so that they can fit in the world market. The foreign laws and regulations usually hinder businesses operations since some laws may not favor some products or the taxation policies are too expensive. Global shipment methods are hard since some of them are too expensive such as the airplanes while others are too slow such as water transport. It is thus hard to choose which method to use, which is affordable and able to take goods to the customers within the specified time.

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Global environmental issues are also hindering the development of businesses. Issues related to protecting the environment and pollution laws may be too harsh such that they hinder the improvement of business. Risks of labor exploitation or lack of skilled labor in the international context is an issue, where a diverse workforce may be hard to find (Driver, 2017). The supply chain complexity also affects the operations considering that in some places, a company may not get the raw materials they require for production purposes. Cultural different and communication issues hinder the growth of a business in the world context. There is no universal language that can be used since each nation wants to maintain authenticity in the business.

Despite the existence of the problems, a solution can be found which helps remove the barriers hindering international operations. A company should ensure that they have a diverse workforce who can deal with international customers with no issue. The CEO of the international wireless accessories retailer, Cellairis Company, Taki Skouras suggested that companies should hire bilingual staff members who are able to translate. Skouras indicated that a company might not have the resources to hire full-time translators; however, outsourcing can be done such as using overseas customer service. It will ease the budget and same time solves the issue of the language barrier. When interacting with the customers, it is necessary to engage them in conversations, especially for the employees. They will learn some important facts about their customers as well as some words in their language, and over time, communication issues can be addressed.

Before a company decides to expand internationally, it is essential to learn about the varying tax codes, packaging standards and business regulations in the countries to venture in. It is essential to know that in America, incomes for the world nations are taxed. The country is also associated with administrative burden thus discouraging foreign banks to work with the United States. Such information is essential, for an investor in China will first get a separate bank account and foreign business entity to avoid any bank delays (Marciniak & Jarzebowicz, 2017). On the packaging, places like Europe require the products to have up about 24 languages to fit in the multiple languages in the nations.

It is relevant to always consider the effects that new ideas will have. An idea affecting the customers should not only consider the home nation clients but international customers. IP Worldwide CEO Mike Zani indicated that before sharing a new idea in the global platform, it is essential to consider the time zone, cultural appropriateness, and language. If it is not done in the correct way, some of the customers will be offended, and it may affect business operations in those regions. The brand should be consistent throughout, but the business has to adapt in the environment. Apple Company, for example, has maintained their brands but the outlets in China and United States are based on the environment of the two places.

Hiring the right workforce and finding the right partners are paramount for the success of business in the international market. The best team should be diverse, hired from different cultural backgrounds, depending on the cultures that the business will be accommodating. An international partner should be trustworthy, someone who will stand for the business, for example, a franchise (Dunning, 2013). The chief marketing officers at Tony Roma's Restaurant, Jim Rogers indicated that the best partner is the one who is passionate about the brand, understands it, has local experience and has knowledge of the local market. The individual should also have sources of revenue to support the business growth. Most international businesses which are starting prefers to franchise since it helps avoid most obstacles faced in international markets.

Conclusion

In conclusion, the success of companies in global business is determined by learning how to solve the solutions they face. Each obstacle faced can be addressed as long as a company has the right team. Knowledge of the countries to invest in is essential so that the business can adapt to the environment and same time maintains the brand image.

References

Driver, S. (2017, September 07). Going Global: How to Expand Your Business Internationally. Retrieved November 20, 2018, from https://www.businessnewsdaily.com/8211-expand-business-internationally.html

Dunning, J. H. (2013). International Production and the Multinational Enterprise (RLE International Business). Routledge.

Marciniak, P., & Jarzebowicz, A. (2017). An industrial survey on business analysis problems and solutions. In Software Engineering: Challenges and Solutions (pp. 163-176). Springer, Cham.