How does international business achieve its internationalization objectives in the contemporary context?
In today’s prosperous modern society, Multinational Corporation and international organisation becomes a common key factor in increasing economic and social interconnection. Globalization grows mobility of goods and services, and expands business in all dimensions. To enterprise an international business is indeed a complex level of soaring towards the international trade. In order to up keep the business standards and objective, Silkenat, Aresty & klosek (2009) believes that trust is a fundamental matter in business trade. It gives reliability and a continuation business relationship.
Veghefi, Paulson & Tomlinson (1991) concluded that international business involves three characteristics. First, an exchange of goods or service across worldwide. For instance, America set up factories in China, making use of their cheap labor production allowing goods at lowest cost possible. Secondly, the ties between China and America become stronger as there is an exchange of trade, relationship and interactions. Lastly, international business can be influenced by non-commercial consideration.
For this essay, I have chosen an international organization, International Labour Organization (ILO). I will discuss a summary of the organization mission and objective, internationalization process of ILO’s successfulness that help in some countries and its impacts on international context. Finally concluding the experience learned from the organization and an understanding of the organizational phenomena as a whole.
Overview, Mission & Objective
ILO's mission was set by its Director-General (ILO 2012), 'To promote opportunities for women and men to obtain decent and productive work, in conditions of freedom, equity, security and human dignity'. It aims to balance the worker's benefit and exploitation scale. Therefore giving employee a better work-life situation (Cairns & Sliwa 2008). To meet its mission, ILO has derived a four directions approach (ILO 2012). Each having its own facet of strengthening ILO's foothold in the society. Establishing labor standards and guideline for organizations to follow. This will set the basic framework for organizations. With wider acceptance and application, the conditions of employment will gradually level up (Tan 2007). This results in better relationship with employers and satisfied employees. Decreasing the level of covert or overt sabotage events to the company (Tan 2007).
Promoting employment and income level. Targets to decrease poverty level in the country (ILO 2012). Through funding and structuring upgrading programs for workers, ILO increases the capability of employee. As result, it justifies increased income level for employers to pay employee. On the other hand, with better skilled labor, the market improves itself automatically. Hence, this creates a productive cycle for the labor force (Tan 2007).
Enhancing social protection for employees in work. ILO oversees benefits and agreements promised between companies and workers. This is to prevent empty promises by employers and strengthening the already dicey relation between both parties (Tan 2007). In addition, minimizing the level of uncouth discharge of workers through labor protection. Employees will be more willing to give in more commitment for their job (Liu, Sakamoto & Su 2010). Creating a double win situation.
Tripartism, the vital core to ILO (ILO 2012). Continuous strengthening of its tri-relation is essential for ILO to expand. As Vasilchenko & Morrish (2011) mentioned, increased connection in social network and beneficial ties with dominant power, opportunities will present itself more often and strategies will be able to apply with ease. ILO applies Tripartism on a macro level which consist a bigger scale of collective bargaining and social dialogue. Reflecting to higher...
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