Political Aspects of International Business
International Business (INBU350)
The political aspects regard the International Business has been passing through changes that in one way or another affect the organizations. Countries fighting for defend of their territories against others or internal conflicts to keep the democracy alive; for instance the war between Iraq and Iran, or the citizens of Venezuela fighting for the survival of their democracy. As a result the pressure of the non-business situations stimulated the manner that the entrepreneurs do business internationally. Politics and the governments own interest have a direct connection with these change. The managerial method to deal with international business has been transform to better understand the foreign government’s politics. (Fitzpatrick, 1983). They have stimulated the evolution of managerial function involves with the assessment and evaluation of the non-business environment that has current relevance. Companies has to start comprehend how the different governments rules and policies works. Firstly the study of the culture, religion, ethnic, and how others companies making business in that particular country has been successfully. In case of those companies that don’t have the capital to invest in researching companies, can use the internal resources like an embassy together with the local government agencies. Furthermore of the strategy of the organizations to introduce products and services to the foreign nation they have to improve the managerial knowledge about it. Entrepreneurs can avoid unnecessary monetary looses if they watch closely any political movement. However companies have no control of any political status that can affect suddenly their business. In the meantime by tracking the governments issues can minimize any unwanted situation that directly or indirectly affect the company status. On the other hand is not guaranteed that everything going to be under control....
References: Fitzpatrick, M. (1983) Academic of management. Retrieved from: www.jstor.org/stable/257752
How managing political risk improves global business. Retrieved from: www.pwc.com/us/en/risk-compliance/managing-political-risk-improves-business-performance.jhtm
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