The International Environment
Management in International Business
July 11, 2012
INTERNATIONAL MANAGEMENT 2
When it comes to doing business in a global market arena, there are various challenges that international managers face. They must understand the environment where they are, or hope to operate. There are characteristics of the import and export industry which consist of the legal, political, and cultural aspects of the environment which affects the international operations of that environment. (Phatak, Bhagat, & Kashlak). In light of considering that when a company’s losing money on what it produces while producing the products that it offers, it may become necessary for the company to consider other options such as going global at a rate which is less costly than the company had originally been operating at. What cost $700 million here at home might only cost $300 million abroad. So, that company’s advantage would be to go global in production. (Phatak, Bhagat, & Kashlak). I’ve chosen the Indian market as the country that I’d like to import and export to in doing business. The Indian market has a very distinct character and many companies around the world have come to realize that it’s not so easy to understand the process of doing business there. “India has a highly regulated trade, a lot of policies, a lot of laws & very different market conditions” (www.ucityindia.com). The import and export industry consist of many details for getting set up as an operation in a global environment. When we look at the risks that are involved through out the environment of the global arena we should consider the political risks, while understanding that international companies...