Global expansion Essay Example | Topics and Well Written Essays - 750 words

Global expansion - Essay ExamplePolitical and companionable climate of distant countries. Local taxes and regulatory systems. Currency danger and Foreign exchange management. Transfer price and supply range of mountains management. Local workforce. Diversified elaborations of international markets Cultural differences substantially impact the way companies do businesses. It is important to be aw atomic number 18 of the disparities that will be at your disposal in the target market. When expanding into international market, the accustomed norms, value and behavior of the local citizens mustnt be ignored. A bottle of Ameri whoremaster whisky can be an offense in middle-east countries. Political and social climate of foreign countries A stable political and social system can be beneficial for the company which intends to expand whereas unrest and destabilized political system can create new issues for it. Local taxes and regulatory systems It is crucial to determine whether the tax regime for international businesses is intimate or competitive. Corporate tax rate with low headline is always appealing for the companies. Currency risk and foreign exchange management Companies must determine whether the local currency is stable or volatile. It should too stumble if currency hedging can be obtained at a reasonable cost. Transfer price and supply chain management Development of effective supply chain helps to generate the companys cash flow more quickly. Brief information should also be gathered regarding the transfer pricing policies of the foreign countries. Local workforce Effective communication of the local workforce has the ability to make or break the progress of business. It is the foundation of success for every business. Right people at the right localisation principle that is, financers, staff, suppliers, regulators, quality of customers can provide a competitive edge to the business. 2. Explain what heathenish barriers and diversity issues are comm only encountered by international/multinational (MNC) and global organizations. Cultural Barriers and Diversity Issues MNCs usually promote consumerist culture by producing standard commodities for diversified cultures. Yet, culture frequently become barrier and creates distances. The following are the prime reason of diversified cultures all over the world. Communication and Language Barrier- Different languages are spoken in different countries which become a hindrance for MNCs. It is an essential means of communicating with customers, retailers, suppliers etc. therefore, language often becomes a barrier in diversified cultures. Religion- Religious backgrounds usually have substantial impact on the individuals. People do not psychologically and emotionally accept something which is not aligned with their religious values. This often becomes hindrance for MNCs while tapping into diversified nations and cultures. Accustomed/diversified Culture- Socio-cultural differences, norms, beliefs, values, attitudes, perceptions congregate to form a certain cultural background of a country. These aspects vary from country to country and therefore construct a diversified nature of the world. 3. Why has diversity become such an important topic in the international arena? splendour of Cultural Diversity Cultural diversity plays a vital role for a company. The criteria diversifies customer groups on the basis of gender, race, ethnicity, age, educational background, beliefs, lifestyles, language,