Essays on From the International Business Point of View Assignment

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The paper 'From the International Business Point of View' is a great example of a Business Assignment. Globalization has turned the world into a global environment or village in which from the standardization point of view, advancement in the means of communication, as well as transportation, have made the world preference structure to get more pressed into a kind of homogenized commonality. It is apparent that global corporations find it difficult to make decisions about the appropriate marketing strategy to adapt as they go global. The most common question is whether they should standardize their processes or adapt the marketing strategy they have put in place according to the environment.

Since the global market is still growing into a homogeneous environment, it means that the homogenization of the global markets requires the firms to continuously and effectively adapt the standardization strategy worldwide. Therefore, it is relevant to point out that standardization is critical in managing the changing world structure because the globalization world is increasingly becoming homogenous based on their needs and wants. Due to increased globalization and the need for more standardization, it implies that to a larger extent, the world is still not homogeneous for international business (Hussain & Khan 2013, pp. 355-356). Generally, consumers pick global brands based on its three major dimensions namely; quality signal, global myth as well as social responsibility, and these cause variations within brand preferences across the globe.

In each country, therefore, consumers hold different views about global brands. Most consumers worldwide are categorized into at least one of the four segments-global citizens, global dreamers, anti-globals, and global agnostics with emphasis on how they relate to specific global brands.

In particular, Global citizens are more concerned about firms’ behavior in the environment. Global dreamers accept brands without hesitating, while anti-globals tend to avoid buying products from trans-national companies. On the other hand, global agnostics totally do not regard the global nature of brands as anything that deserves special consideration. This clearly shows how the world is still not homogeneous for international business (Bolt, Quelch & Taylor 2004). Research shows that uniform production conditions, as well as product homogeneity, still exist internationally. As a result of uniform production conditions, it is apparent that unit costs cannot differ from country to country due to the existing differences in productivity between plant locations (Moore & Rugman 2005, p. 38).

In addition, production methods used for a product basically rely on identical or homogeneous inputs of both labor and capital. Therefore, constant returns associated with the increased scale of output are experienced regardless of their source of production (Storehouse 2004, p. 34). On the other hand, the practice of product homogeneity is still troublesome across the world particularly in regions where, apart from the key industrial goods, various products offered in the global markets are differentiated.

Although differentiation is crucial for determining the specific firms which will be capable of specializing and surviving, specialization requires firms to strategically select products within the ranges in which the share firm-specific advantages. This is important in acquiring export markets (MacCharles 2013, p. 56). To a larger extent, international business activity is facilitated by effective communication. This clearly shows that in the global business environment, different activities which include exchanging information and business ideas, matters pertaining decision making and negotiating as well as motivation and leading entirely depend on the ability of managers of a particular culture to effectively communicate with other managers and employees from different cultural backgrounds (Hill 2002, p. 32).

However, achieving and maintaining effective communication proves to be difficult for managers across the globe even in environments where the workforce is seen to be culturally homogeneous (Adler 1991, p. 65). This implies that when multinational companies include different languages and cultural backgrounds, it becomes more difficult to achieve and promote effective two-way communication yet it is vital for international business.

References

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Hussain, A & Khan, S., 2013, ‘International Marketing Strategy: Standardization versus Adaptation’, Management and Administrative Sciences Review, Vol.2, No. 4, pp.353-359.

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