International Business

Abstract

The business world as we know it today has changed from the business world that existed when our parents were growing up. Many business leaders and companies are beginning to expand their business internationally or globally. The advances in technology, and with the use of internet, television shows and politics we see the mention of globalization everywhere. What in fact is globalization, and how has it affected the business world today? When it comes to doing business internationally or globally, there are many different factors that one must take into consideration such as language and culture barriers, negotiation of contracts and various laws concerning issues such as intellectual property rights. With all of these various factors why are companies still looking to expand internationally? How do business and companies survive with all the laws and other forces they have to contend with? This paper will discuss globalization, what it is, and what effect it has had on the business world today. It will also discuss how to overcome language and culture barriers, the various laws business owners and managers need to be aware of and how to negotiate a legal contract. Finally this paper will discuss my own ideas of marketing a professional organization business internationally, and how it would benefit the international market, along with my personal view of international expansion and how I feel faith and your business principles should be integrated together.

How International Expansion has affected the Business world today

Many companies want to become successful both at home and internationally, so they look towards expanding their business and companies internationally to achieve that goal. There have been many companies and businesses that have had much success at making this transition from a domestic business to an internationally business. However there are many business and companies who do not do as well making the transition from domestic to international expansion and end up hurting their company versus helping their company. Some companies do not understand all there is to know about doing business internationally and then there are other companies who have not educated themselves on the language and culture barriers that have an impact on doing business internationally. Not only do you have to be educated on language and culture barriers, but you also need to understand about the negotiation of contracts, and various laws that affect international business. “All managers need to have a basic knowledge of international business to be able to meet the challenge of global competition (Ball, Geringer, Mcnett, & Minor, 2013, p. 8).” I have inspirations of one day opening my own professional organization business; I also feel that this business can be a benefit to not only the United States but to the international market. Professional organizers are becoming more and more of a demand in the US and if there is a demand in the US there also has to be a demand internationally. I can also use my business as a way to promote my faith. “Christian business owners are increasingly meshing prayer with profits- marketing to the like-minded, proselytizing to the unbelieving (Cullen, Akin, August, Brown, & Fulton, 2005, p. A6).” Along with expanding my business globally, I may also experience other challenges not yet mentioned depending on the country that I chose to expand my business.
However, before we can get into all the various factors and how some of those factors have affected international expansion and the business world, and my own personal business goals we must first have an understanding of exactly what globalization is, so let’s begin there.
Globalization
According to Ball, Geringer, McNett, & Minor (2013), the most common definition for globalization “is that of economic globalization which is the tendency toward an international integration of goods, technology, information, labor and capital, or the process of making this integration happen (p.15).” Many companies and also countries are looking for ways to advance globalization and also their business or company. Over the past few decades the talks of globalization has generated both proponents for and against globalization. “The proponents of globalization have argued that the openness and integration is a beneficial process for countries. It will bring prosperity to the larger number of people in the world. They strongly believe that globalization is a key to economic development and reduction of poverty and inequality. On the other hand, opponents call globalization a depressing process that makes our world more unequal due to the limited role of government and the increased gap between those who participle in the integrating world and those who do not (Samimi, Guan, & Aziz ,2013,p. 237).” No matter if for or against globalization, you cannot deny that there remain many factors and many forces that can be cause for concern with globalization.
Language and Culture Barriers One of the many factors or forces that are a cause for concern with globalization and international business expansion is language and culture barriers. Language can sometimes be a factor doing business domestically as the United States is comprised of many different nationalities and people who have come to the United States from various countries where English is not their standard language. One can have difficulty understanding a foreign business owner of a local Chinese restaurant, making the business interaction difficult for both parties involved. So once you have languages outside of the United States where English is not the standard language, the business dealings become complex. “Language is an important key to a culture, and without it people find themselves locked out of all but a culture’s perimeter (Ball, Geringer, McNett, & Minor, 2013, p.108).” Besides language there are also remain other culture barriers that affects business dealing internationally. “Ways of behaving and doing things vary between countries and even within countries. In business, some behaviors such as buying decisions may be the same. In other cases it is important to respect local differences, for example, how you greet someone new for the first time (Growing a Company by International Acquisition, 2013, retrieved from http://businesscasestudies.co.uk/davis-service-group/growing-a-company-by-international-aquisition/introduction.html#axzz2eEMhkhX3).”
Other barriers include differences in religion, art, and music. There have been many big firms that have huge success doing business domestically, but once they expand the business internationally the success is not the same some even resulting in huge failures. Wal-Mart, a very well-known established business here in the United States has failed when it comes to expanding internationally. According to Nelson Fraiman, a Colombia business school professor, “large firms like Wal-Mart have gone to countries like Brazil and failed—the same way they’ve gone to countries like Korea and failed, the same way they’ve gone to countries like Germany and failed-mainly because of not understanding the local culture. If a country like Germany doesn’t like to smile, then don’t smile when you say have a good day. Little details are what usually kill American companies that forget to pay attention (Blackman, 2010, retrieved from http://www.cbsnews.com/8301-505125_162-31041902/why-wal-mart-failed-in-brazil/).”
Contracts and Laws Another factor that affects international business and the business world today is the negotiation of contracts and various laws such as intellectual property rights. Contract negotiation is often another gray area of concern for domestic business so again adding the element of a foreign country to contract negotiations can also prove to be of concern. When trying to decide between disputes between contracts of parties from two or more counties can be very complicated, many countries including the United States have signed the UN Convention on the International Sale of Goods (CISG). The CISG was established to set a universal standard of legal regulations on international business dealings. “The CISG established uniform legal rules to govern the formation of international sales contracts and the rights and obligations of the buyer and seller (Ball, Geringer, McNett, & Minor, 2013, p.185). Another concern is the protection of intellectual property. Intellectual property is “patents, trade names, copyrights, and trade secrets, all of which result from the exercise of someone’s intellect (p.186).” To help protect intellectual property rights when dealing with international business, the World Intellectual Property Organization (WIPO) is an agency that oversees the protection of intellectual property rights.
Professional Organization Business The demand and need for professional organizers has increased over the years. Americans are facing more demands and trying to get better controls over both their personal lives and their business lives. The need to get organized is not limited to just the US, being organized is something that many struggle with and do not know how to acquire, marketing the skills of a professional organizer international would be a good business decision, since there are around 4000 professional organizers worldwide (Napo, retrieved from www.napo.net). “Reaching goals, managing stress, and enhancing productivity are at the very heart of a good quality of life and according to Mayumi Takahari, President of the Japanese Association of Life Organizers, an organizer is uniquely able to influence a client on reaching goals, managing stress, and getting things done (Admin, 2012, retrieved from http://fileheads.net/2012/04/organizing-in-other-countries/).” As a personal organizer I would certainly integrate my faith into my business and my business could serve as my platform to proclaim my faith and all that God has done in my life. “For many of the nation’s greatest entrepreneurs and business leader, the active expression of their faith is an integral part of their business success (Graves, 2006, p.12).” As Christians and believers of God we are to actively witness and proclaim the good news of God no matter what we do, as stated in Mark 16:15 “and He said to them, Go into all the world and preach the gospel to all creation (The Holy Bible, 2011, p.569).”
Depending on what country that I decided to expand my organization business I may face additional challenges besides the language and culture barriers, contract negotiation issues, and intellectual property rights. For example if I were to decide to expand my business in China, I would have to face the challenge of dealing with the currency used in China and converting the currency back to USD. China also presents topography issues of dealing with their huge mountains. “Travel across them is so difficult that transportation between India and China is by air or sea rather than overland (Ball, Geringer, McNett, & Minor, 2013, p.122).”
Conclusion
Globalization has had many effects on the business world today. Some effects negative, some positive, but either way there has been effects that will forever change the way that business is done internationally. There are many barriers, such as language, and cultural barriers that international business managers need to learn how to overcome for their business to be successful. Also the international business manager needs to make sue to know how to negotiate contracts and what laws they need to be aware of in their international business dealings. I feel that the expansion of business to foreign and international markets is a win-win deal. The win is for the domestic company bringing profits from foreign countries to the US and then also a win for the foreign country of generating profits and revenue for their country. Globalization also helps to promote economic growth, and “the economic growth fostered by globalization can help generate and distribute additional resources for protecting the environment (p.20).” References
Admin. (2012). Organizing in other countries, Retrieved September 6, 2012 from, http://fileheads.net/2012/04/organizing-in-other-countries

Ball, D. A., Geringer, J.M., McNett, J.M. & Minor, M. S. (2013). International Business: The challenge of Global Competition. New York, NY: McGraw-Hill Irwin
Blackman S., (2010). Why Wal-Mart Failed in Brazil Retrieved September 7, 2013 from, http://www.cbsnews.com/8301-505125_162-31041902/why-wal-mart-failed-in-brazil/

Cullen, L., Akin, P., August, M., Brown, D., & Fulton, G. (2005). Praying For Profits. Time, 166(7), A6-A12.

Graves, E. G. (2006). Business and Faith. Black Enterprise, 36(10), 12.
Growing a company by International Acquistion, (2013). Retreived September 6, 2013, from http://businesscasestudies.co.uk/davis-service-group/growing-a-company-by-international-aquisition/introduction.html#axzz2eEMhkhX3

National Association of Professional Organizers, (2013). Retrieved September 7, 2013, from http://www.napo.net/our_profession/

Samimi, P., Guan Choo, L., & Aziz buang, A. (2013). Globalization and its challenges for OIC countries. Australian Journal Of Basic & Applied Sciences, 7(1), 237-245.

The Holy Bible, New International Version. (2011) Grand Rapids, MI: Zondervan

References: Admin. (2012). Organizing in other countries, Retrieved September 6, 2012 from, http://fileheads.net/2012/04/organizing-in-other-countries Ball, D. A., Geringer, J.M., McNett, J.M. & Minor, M. S. (2013). International Business: The challenge of Global Competition. New York, NY: McGraw-Hill Irwin Blackman S., (2010). Why Wal-Mart Failed in Brazil Retrieved September 7, 2013 from, http://www.cbsnews.com/8301-505125_162-31041902/why-wal-mart-failed-in-brazil/ Cullen, L., Akin, P., August, M., Brown, D., & Fulton, G. (2005). Praying For Profits. Time, 166(7), A6-A12. Graves, E. G. (2006). Business and Faith. Black Enterprise, 36(10), 12. Growing a company by International Acquistion, (2013). Retreived September 6, 2013, from http://businesscasestudies.co.uk/davis-service-group/growing-a-company-by-international-aquisition/introduction.html#axzz2eEMhkhX3 National Association of Professional Organizers, (2013). Retrieved September 7, 2013, from http://www.napo.net/our_profession/ Samimi, P., Guan Choo, L., & Aziz buang, A. (2013). Globalization and its challenges for OIC countries. Australian Journal Of Basic & Applied Sciences, 7(1), 237-245. The Holy Bible, New International Version. (2011) Grand Rapids, MI: Zondervan