Forces in International Business
Introduction McDonald’s is a corporation from the United States that has done a great deal of business internationally for many years, and is well-known globally. McDonald’s is listed at number 378 on Fortune’s Global 500 list, and brought in over $22 billion in revenues in 2010.
Sociocultural Forces Sociocultural forces include the different aspects of understanding that exist in one culture in comparison to another. These aspects include aesthetics, religion, language, education, etc. It is important to remember that culture is not something that is innate to specific persons, but is rather something that is learned through experiencing the culture. Along those lines, culture is also shared between all of the members of the culture, and all aspects of it are interrelated. In fact, group boundaries are caused by culture and set persons feeling towards different actions. The concept that one’s own culture is better than another is called ethnocentrism.
Natural Resources and Environmental Sustainability
The second force encompasses natural resources and environmental sustainability. Natural resources are based upon location within the world and advantages that these resources give a nation relative to the rest of the world. Some of these resources are limited, and over time if taken into account can become depleted or cause harm to the environment in another way. The concern for the sustainability of these resources should be of some concern to businesses operating internationally because it affects their decisions and the decisions of those they are negotiating with as well.
Economic and Socioeconomic Forces Economic and socioeconomic forces also play parts as forces that affect different countries. The economic forces include different levels of economic development; including developed, developing, and newly industrialized countries/economies. Socioeconomics affect the economies of different countries and regions individually based on their own social
Sociocultural Forces Sociocultural forces include the different aspects of understanding that exist in one culture in comparison to another. These aspects include aesthetics, religion, language, education, etc. It is important to remember that culture is not something that is innate to specific persons, but is rather something that is learned through experiencing the culture. Along those lines, culture is also shared between all of the members of the culture, and all aspects of it are interrelated. In fact, group boundaries are caused by culture and set persons feeling towards different actions. The concept that one’s own culture is better than another is called ethnocentrism.
Natural Resources and Environmental Sustainability
The second force encompasses natural resources and environmental sustainability. Natural resources are based upon location within the world and advantages that these resources give a nation relative to the rest of the world. Some of these resources are limited, and over time if taken into account can become depleted or cause harm to the environment in another way. The concern for the sustainability of these resources should be of some concern to businesses operating internationally because it affects their decisions and the decisions of those they are negotiating with as well.
Economic and Socioeconomic Forces Economic and socioeconomic forces also play parts as forces that affect different countries. The economic forces include different levels of economic development; including developed, developing, and newly industrialized countries/economies. Socioeconomics affect the economies of different countries and regions individually based on their own social
References: Adams, C. (2007). Reframing the Obesity Debate: McDonald’s Role May Surprise You. Journal of Law, Business, & Ethics, 35(1), 154-157 Ball, D., Geringer, M., Minor, M., & McNett, J. (2009). International Business: The Challenge of Global Competition Royle, T. (2000). Working for McDonald’s in Europe: Unequal Struggle?. London: Routledge. Watson, J.L. (1997). Golden Arches East: McDonald’s in East Asia. Palo Alto: Stanford University Press. Wei, M. (2011). Hamburger University Shanghai is Sizzling. Business Week. Retrieved from http://www.businessweek.com/magazine/content/11_06/b42140224816