The following essay analysis the challenges in International Management with particular regard to the challenge of “culture” in international business as it is the must difficult to deal with and being essential for successful results in a wide range of global management tasks nowadays and in the future.
Today successful international management requires more than a lot of frequent flyer miles or seasoned expatriate managers. But what are those exclusive challenges of international management in today’s world?
The importance of international management is constantly increasing, as we exist in a world where globalisation is affecting the traditional borders in a broad range of areas.
• Trade and investment,
• Economic alliances,
• The international stage players, and
• The work environment
are changing rapidly, being supported by the increasing sophistication and lower cost of information technology.
World trade and investments are growing fast (the volume of world trade among countries has grown at an average rate over 8% since 2005 (WTO 2008)), linking the economies and creating opportunities and threats. New, strong and forced competitors are coming from developing nations in Asia and the transitioning economies of Eastern Europe. Furthermore, the constantly rising level of foreign direct investment also has a globalising effect (Thomas 2002).
Moreover, the emergence of the free-trade areas drastically decreased traditional economic boundaries. So do the three largest groups, the EU, the NAFTA, and the APEC, account for nearly half of the world’s trade (Cullen 2002) and the World Trade Organization (WTO) now has 140 member-nations, aiming to reduce tariffs and liberalize trade.
But globalization also affects the work environments within organizations. Changes involve cutbacks, team-based management movements and privatization. For instance, there can be factory closings, as... [continues]
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