Differences among nations affect international business Essay

This paper describes nigh of the ways in which social, cultural, economic, legal and political differences among nations affect planetary handicraft. Specific real world samples of the described differences argon also provided.Doing blood line in the international marketplace mandates taking into floor some very hard to overlook social differences between countries. For instance, if severe to market and sell a product in a province other than where the society is based, the company must(prenominal) take into account the voice communication differences for much(prenominal) things as packaging (Ebert, R. J., 2003), use instructions, marketing materials, web identify presence, and customer care and keep going. A marvelous real world cause of overcoming social differences in order to do business in the international marketplace is provided by the company Ikea (Ikea, 2003). Ikea does business in over cardinal countries.Much of Ikeas furniture requires the purchaser to asse mble them. This means that solely the instructions that are included with the same merchandise must be written for apiece of the countries that it does business in. A nonher example of Ikeas quickness at handling social differences is their website (www.ikea.com). The company has links from their global website to translated websites for each company they do business in.There are some other, non so obvious, cultural differences as well. Such things as general consumer cullences may be very different in the target solid ground. An example of these consumer preferences would be what is considered standard staples in the sylvan. Another example would be shopping habits, such as time, frequency and consumer outlet type that is generally preferred (Ebert, R. J., 2003). heretofore another example would be if the standard work day isnt the same as a standard workday in the countrified where the company is based, this could affect such things as the hours of operation of a store- front or office. A terrific example of general consumer preferences is brought to light by McDonalds (McDonalds Inc, 2003).McDonalds does business in over fifty-eight countries. In order to gain consumer credibility they generally provide to a beneficence in the countries they do business in. In the United States the charity that they prefer is the Ronald McDonald House, which concentrates on providing for the needs of children. In Europe the charity of choice for McDonalds is a communityfootball (United States soccer) due to the heavy influence that the lark has in the European countries it does business in. There are also some other cultural differences in European McDonalds, such as the lineup beer is served as a beverage.Economic differences are probably the first hurdles that a company will recognize while planning to support their trade in a foreign country. These differences will be exceedingly obvious if, for instance, the company of interest is based in a country with a Market or Mixed Economy and wishes to do business in a country with a Planned Economy. Economic differences female genitals include things such as monetary trade rates, the countrys banking policies and presidential term involvement in an industry (Ebert, R. J., 2003). China is a broad example of doing business with a Planned Economy country (Premier sensory faculty Company, 2003). In China foreign companies can not own land, instead it must be leased or rented from Peoples democracy of China.Legal and Political differences are the biggest players in doing business internationally. A governance in a foreign country can determine how an away(p) countrys business is run in their country by controlling such things as the cost of the outside countrys companys goods in their country by using quotas, tariffs and subsidies (Ebert, R. J., 2003). The government can also control the payroll and employee education costs as well as initial capital expenditures of an outside countrys co mpany, by requiring that a portion of what the company sells in their country must also be produced there.This may require employing local people and peradventure educating them, as well as setting up a presence, whether it is a manufacturing plant or another type of facility that is required for the company to produce its goods. There is also the matter of complying with the target countrys business laws and regulations. This requires that the company expand its legal group to include knowledge of the remote government in order to encourage itself. Many things that may be legal in one country, may be illegal in another. Cuba and the United States is a good example of legal and political differences (Haar, J., 2002). A United States company can not do business with Cuba, as it is illegal in the United States to do so.ReferencesEbert, R. J. (2003). Business Essentials. Upper Saddle River, NJ Prentice Hall.Ikea (2003). http//www.ikea.com. Sweden Inter IKEA Systems B.V.McDonalds Inc . (2003). http//www.mcdonalds.com/corporate/social. United States McDonalds Inc.Premier Star Company (2003). http//chinaunique.com/business/law_main.htmlland. Rochester, NY Premier Star CompanyHaar, J. (2002). http//www.miami.edu/nsc/pages/newsupdates/Update53.html. Miami, FL University of Miami