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International Operations: Advantages and Disadvantages
There are varieties of reasons why companies decide to engage in international trade transactions or invest in foreign economies. In this assignment, you will draft a report on the advantages and disadvantages of engaging in international operations. In your report, discuss the following:
- How do firms confront different social, cultural, demographic, environmental, political, governmental, legal, and competitive forces when doing business internationally?
- How do language, culture, and value systems differ among countries, and what barriers to communication and problems in managing people do they create?
- Why is gaining an understanding of regional organizations often necessary in doing business internationally?
- How can dealing with two or more monetary systems complicate international business operations?
- How do foreign operations allow firms to establish low-cost production facilities in locations close to raw materials, cheap labor, or both?
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