The key international management issues of present day global business environment

The management of international organizations is definitely different from the management of domestic organizations because an ‘organizations conducting business across borders must deal with the complexities of three different types of environment: domestic environment, foreign environment and international environment’ (Batt, 1988, in Ball & McCulloch, 1999, p.31). Whether managing a multinational company or an import and export business, proper understanding of the international business environment is mandatory for the achievement of meaningful success. As such, it is important for managers of international organizations to understand the forces behind the operational characteristics of international environment.

[...] Such reference to workers’ behavioral aspects has further been recommended by theory Y which poses optimistic view of workers as hard working, sensitive and cooperative. W.G Ouchi’s theory Z which is based on studies of success of Japanese companies in manufacturing also lends credence to human aspect of management by suggesting the ‘coordination of people rather than technology in the pursuit of productivity’ (Cole p. 29). Some of the motivational strategies which can be adopted by managers in international business environment include delegation, employee empowerment, and assertiveness. [...]

[...] Therefore, accumulation of foreign exchange reserves spells benefits to a country only to the limits that such reserves may allow the country to gloss over the effects of short-term fluctuations in the balance of payments. Labour regulations It is always important for managers of international business organizations to understand that regardless as to whether an organization is pursuing classical or contingency management styles, any assumptions which they hold have the potential of fundamentally affecting the environment and working arrangements in organization. [...]

[...] The more closely the management of an international company can align its comparative advantage with a source or destination country’s competitive advantage, the more conveniently it can achieve and maintain its overall business objectives. Moreover, international management requires consistent reference to controllable environmental factors such as raw materials, capital and people, marketing, advertising, personnel management and finance as well as uncontrollable environmental factors that include competition, distribution, the economy, finance, regulations, geography, politics, culture, labour and technology. Notably, socio-cultural factors are definitely some of the most important factors for any company engaged in international business. [...]