Dealing with International Business - Assignment Example

Writer’s name] [Professor’s name] [Course title [Date] International Business Answer 1 Each and every culture and country have their own way of understanding and defining situations according to their own culture or set of traditions. Thus, if a company wants to sell it’s product to change it’s organizational structure, invest and manage it’s international operations, they have to be according to the values, attitudes and traditions of the host country (Bhaskaran & Sukumaran p 54) The immense effect of culture on the international management is can be seen by the way the manage ahs to change it’s behavior according to the host country. International businesses now handle their customers, strategic partners, distributors, and rivals according to the culture they belong to. Thus it can be said that the position of manager managerial is depends on a strong cultural bound, therefore, national culture, it effects the entire strategy of their business plan and even the way of communication is effected In some countries some products do not sell like in Muslim countries pork is not sold thus company which exports pork will have to export beef and chicken as well if it wants to enter such a market. Due to the fact that markets are undergoing globalization, there is no fixed organizational structure as they have to change it according to the culture. Considering the local nature of the market, the culture and the socio-economic conditions, of a country organizational have to adjust accordingly ( Hampden& Trompenaars p34) . Whether or not culture can be managed, or is just simply left to manage itself, it is an important part of an organization. It must be understood that culture often needs to change for the organization to be successful, but this does not create the need for radical change. If some parts of the organization are redefined and manipulated over time than culture can be moulded for positive benefit. Answer2 It can be observed that most of the weaknesses in the economy system’s factor conditions are due to the human resources. An extremely strange condition factor is that the pathetic local education system was based on the facts that almost all of the UAE nationals had jobs in the public sector, however the public sector a few years back it only had twenty eight present of employment of UAE nationals. Amongst the present age group of UAE students who attend university, only 2/3 of these students obtain a degree and thus this effects their economic system Jobs in the private sector are not open for students or art or religion and thus in UAE finance holds a better position. What affects the economy more is that only a few are male. Condition factors International politics is an important factor contusion which effects UAE. As the entire international market constantly blames the Arab as terrorists or for corruption, their financial services cluster will not be successful in acquiring major trade from countries who are not part of the GCC. There are many other negative competitiveness characteristics (1) No skilled labor (3) Good finance and management is some thing rare Positive Factor Conditions Each state in the UAE is supported by a different sheikh, and all the investment and operations are managed by a single person. Whilst he is still living he supports the development and puts in all his energy to give good governance. The support of such sheikh proves essential for the industry and it proves to be a critical advantage and important and factor in UAE as poor governance is considered as sign of poor management. Yet, if the sheikh passes way then in that case, then the problem arises regarding the future leadership as it has inadequate democratic responsibility. There are many other positive factors of condition which affect the UAE they are given below: (1) They have a lot of cash-rich oil and gas cluster (2) They have a long history of wealth. Answer3 Alternative of renewable energy Solar energy This is most well known alternative as it is less costly .Solar energy is solar energy is presently consumed for generation of electricity , cooking of food ect. A few solar collectors are fixed which gather the solar energy from the sun and the this angry is used for various purposes like the ones motioned above. (Fornasiero & Graziani p21) 2) Wind energy: Wind energy is usually used to generate electricity; it is currently being sued in a lot of countries. Enormous fans are fit to gather the wind energy and change it into electricity for household as well as commercial use. It is popular in demark and India use this kind of energy a lot. Water energy: This is obtained from natural forms of water such as rain. Alternatives for non-renewable energy sources The energy source which cannot be reproduce and which lessen as they are used, these are known non-renewable energy sources. There are not many alternatives for this kind of energy, this widely utilized non-renewable energy sources are known as fossil fuels which consist of natural gas coal and oil. Renewable resources are more valuable as the population is increasing and an immense amount of energy is consumed by this ever increasing population (Kemp p 43). There has been a way to conserve energy, which only means to diminish the quantity of energy which is at present being used. The population is growing and the demand for energy is increasing with it. The main source of energy is being used; after they are all finished they can not be reproduced. However this can be lowed down just by conserving this energy, thus it may be stored for future consumption. This may permit today’s’ growing population to look for further alternative. More notably, conserving energy will help in reducing air pollution and thus this only possible if Renewable resources are considered as a source of conserving energy. Answer4 International firms have to monitor labor compensation rates so that they can make sure that the system is operating as it is supposed to. They have to make sure that compensation system also has controls. The practical function of the of the entire process should be constantly monitored to make sure that it complies with design policies and also follows all the necessary procedures. It the results of compensation, risk measurements, and result of the risk must be frequently monitored to make sure that there is constancy with objective. By monitoring the management can make sure that an employee’s compensation must consider all the risk which an employee takes on the behalf of the organization. By monitoring the compensation the management will know if the risk has been controlled or not while implementing the system. Reasons for Changes in Rates Since 1970 One of the most important reasons for changes in rates is that that ears faced an oil restriction in 1973 and there was a major problem oil supply in 1979, thus the economy of the 1970 faced a lot of inflation, recession, and the rates of unemployment was extremely high . These adverse conditions resulted in price controls and new and improved plan to fight poverty as well as unemployment. The era also witnessed many wars and conflicts amongst countries a this brought considerable political and social instability to the entire world. This era also went through a lot of important changes as women were now included as part of the work force. In this era many changes took places in the laws of workplace and thus this greatly affected the compensation and workplace issues. The growth rate in total pay (including both observed and unobserved forms of compensation) may have been faster during these earlier decades than in later years when the tax advantage of pensions, perks, and other non-taxable benefits was smaller (Frydman & Saks p13). A problem of analyzing these factors using only information since 1970 is that the level of reimbursement was based on an increase in conjunction with a lot of variables based on the projected reasons, for making it hard not to count the unobservable factors that may be the reason behind concurrent trends. Facts from past in the years may be able to put some light on each of these reasons by giving a view about how compensation was considered in a time when inflation was low. Answer5 Telecommunications is something extremely important for the world today, if countries want to enter the intentional market it plays an extremely important role. Underdeveloped countries where there is a lack of telecommunication have a hard time entering the international market and thus their goods are sold with great difficulty. The business that telecommunications gives results in a large portion of GPD, thus underdeveloped countries which lack it cannot acquire this advantage. If a country does not have good and up to date telecommunications then it is left behind in business, wealth and they even suffer from market instability in the international market. As telecommunications help enhance these things, it also serves as an advantage and improves the entire international market by creating a global village and thus countries that lack this facility have slower reaction time and they do not have enough updated information to sell their goods (Carr & Snyder p12). In a system, the purpose of telecommunications is exactly like the nervous system of a human being. It is a well known fact that speedy and consistent exchange of information among each and every part, successful control and management of systems like the one mentioned before w is close to impossible. As a result, if an undeveloped does not make sue of this system it may even lack in it’s resources as it will be left underdeveloped. Even though some under developed countries do not consider telecommunication something important or fundamental thing for their development, they have to realize the fact that inadequate telecommunications may be extremely costly for them. The world is developing at an extremely fast pace, and it would be hard to keep up without adequate telecommunication. And if undeveloped countries do not dos something about their telecommunication system then they will never be able to gain a stable economy. Answer6 Countries have import restrictions it helps local manufacturers to sell their merchandise at lower prices then that of the imported merchandise. Thus it can be said that governments usually enforce import restrictions in order safeguard the local industries as well as to increase the revenues of these industries, thus by enforcing trade barriers, the government tries to achieve an economic goal which it has. And thus it enforces this to encourage domestic production as well as to protect the local employees. As they believe that this will also help in reducing the rate of unemployment The UAE Economy and Tariff Barriers The UAE economy should not have should not set tariff barriers even though these regulations set of laws or guidelines are utilized restricting the imports and for protecting all the local industries, nevertheless they may fail to strengthen the revenue UAE (Klaus and peter p 24). On long term basis tariff barriers can eventually damage the local economy, as they even safeguard even those industries which are not performing properly and thus do not help in raising the revenue of the country. They even safe guard manufacturers who do not produce enough to enter the competitive international market, this not only wastes the resources and money of the local government but also give them a chance to just lye back and enjoy the fruit which others grow. Thus inflation takes place and the local consumers have to pay high prices. This inflation highly affects the host country. UAE would be better off avoiding these tariffs so that their resources can be sued on industries and manufactures who truly want to raise the country’s revenues. Answer7 UAE should remain tax free country as there a lot of benefits for such a country. Like lot of tax free countries it too had a double monetary control system this helps the government to remain extremely organized and thus they can easily distinguish residents from non-resident and also monitor their own currency rates. If a foreigner to establishes a organization in a tax free country with the intention of trading in an international market ; the organization’s trading will not be controlled by exchange controls only if it utilizes a foreign currency to trade in any country apart from the free tax country. UAE should also remain a tax free country as trading as well as other business operations can be done more easily (UAE Free Zone Investment Guide p 13). A lot of kind of trade does not need any particular geographical location or a lot of workforce opens up their businesses in tax free countries, so that they do not have to pay a lot of taxes. Thus this saves them a lot of money which they invest in improving their businesses. Another reason as to why UAE should remain a tax free country is that a lot of the economic systems in tax free countries today have a lot of professional financial services for e.g. mutual funds, reliable banks , good packages of life insurance and reliable dispersal of pensions. Thus it can be said that UAE should remain a free tax country so that it can reap all these benefits. Answer8 Currently Population aging is increasing at a very rapid speed in a lot of countries , however those countries which are still in the process of development and whose fertility declines began relatively early also are experiencing rapid increases in their proportion of elderly people and have a very low birth rate tend to face the problem (Weil, p967) . This may increase over the next few years, and soon the whole world will have large amount of ageing people and les young people. Population aging has a lot of socio-economic and health outcomes, as well as the fact that the old aged depend mostly on the government to fulfill their needs. Considering the fast aging population regional and global interaction, a spirit of entrepreneurship, recognition of own skills and taking advantage of economic niches, openness and engagement in the globalization process while protecting and preserving national and regional identities and cultures seems to be the only avenue to sustainable development and prosperity (Changing population age structures and their implications on socio-economic development in the Caribbean p1) Population ageing seems to have an important effect on the implications for each and every area of a person’s life style. If the economic system is considered the population ageing may have a immense effect on the growth of the economy, savings, investment and utilization of resources , the jobs in the labor markets, the dispersed pensions, the amount of income tax which is excused . If the social area is considered the population ageing ahs an immense impact on health and health care system , structure of family and lifestyle, residence mostly these old aged homes (Gavrilov & Heuveline p 32). If we consider the political sphere then their votes have huge effect of the result of the election. Politicians usually promise a lot of benefits for the aging population this wins them their votes this even in the area of politics they play an extremely important role. Thus in every sphere of life the aging population had a major effect. To conclude it is quite obvious that the rapid demographic changes, which had began when the old age population began to increase have started modifying the entire world. Answer 9 The most important factor in coping with culture shock is to accept that, however well you prepare, it will affect you to some extent. The culture of the host country may also be very different, even when the shift is to a country with the same lingual background. These factors lead to a condition referred to as culture shock. (How to Cope with Culture Shock p1) In order to avoid this kind of shock one has to first find out what the problem. It could be that the language in UAE is quite different from English and it could be confusing, the sense of humor and kind of information in UAE may be quite different. But if one realizes that this why cultural shock is being experienced it becomes quite easy handle. A lot of scientists and psychologists consider it to be a healthy experience as with it none can ever adjust to a new environment as it enhances learning. First of all to avoid such stress one can talk to people who have been there or have previously experience what you are experiencing. A very common way is to talk to people of you country so that you know that there are other around who understand you and who have been through the same kind of cultural shock One can also go for walks and explore the lot of new places in UAE like the shops or cafes so that you can discover all the new places. Once you roam about the area you start to feel comfortable. You can also talk to travel guides before your flight to UAE or to a friend who has been there to help you out about things like shops and cafes in the area. Reading about a country before going there also helps a lot, if you read about it’s traditions and history you will know exactly what to expect and how the people there will be. Thus cultural shock is something which can be handled quite easily if it is taken positively (Crocetti p4) Answer 10 There are a lot of complications of compensation packages for expatriate executives they are given below Allowances and percentage of base salary are usually paid in host country currency Percentage usually 65 to 75 percent, with remainder banked where employee directs Another important complication is the Exchange Rate The exchange rate has to chosen More difficult in countries with exchange controls and nonconvertible currencies ( human resource management p1) Employers who hire staff to work in their offices way from their country have a free hand when it comes in designing company benefit packages that may be appropriate for the employer as well as the staff. Apart from other benefits to make prefect package benefits like different kinds of medical leaves and long family leaves so that they can visit home is the requirement of labor law. Every compensation package has to be designed according to the set of labor law. Epically those packages which are fair and attractive for staff which the employer wants to send over seas. For an extremely attractive package it is necessary to give them a lot more then just a retirement plan and large number of casual leaves; more incentives are an important if the package is to attractive (Lomax p 23) A lot of originations provide flexi hours, paid leaves to visit home, and some even provides accommodation and family visa, these may be highly expensive, can but they make the package more attractive for employees who are being sent over seas. But a good salary package make the package more attractive thus the employees know they w ill be sending home a handsome amount for their families. Work cited Bhaskaran Suku & Sukumaran Nishal ; National culture, business culture and management practices: consequential relationships Cross Cultural Management: An International Journal 2007 vol 14 pp 54 – 67 Carr H. Houston & Snyder Charles ; The Management Of Telecommunications: Business Solutions To Business Problems McGraw-Hill/Irwin; 2 edition 2002 p 12 Changing population age structures and their implications on socio-economic development in the Caribbean 2006 p1 retrieved from http://www.eclac.org/publicaciones/xml/3/27113/L.98.pdf Crocetti L Gina ; Culture Shock! United Arab Emirates: A Guide to Customs & Etiquette Graphic Arts Center Publishing Company; Expanded edition 2001 p 4 Fornasiero Paolo & Graziani Mauro; Renewable Resources and Renewable Energy: A Global Challenge CRC Press; 1 edition 2006 p 21 Frydman Carola & Saks E. Raven; Executive Compensation: A New View from a Long-Term Perspective, 1936-2005, 2008 p13 retrieved from http://web.mit.edu/frydman/www/trends_frydmansaks_0808.pdf Gavrilov L.A. & Heuveline P; Aging of Population. In: Paul Demeny and Geoffrey McNicoll (Eds.) The Encyclopedia of population. New York, Macmillan Reference USA, 2003, vol.1, 32-37. Hampden Charles & Trompenaars Fons; Riding The Waves of Culture: Understanding Diversity in Global Business (Hardcover) McGraw-Hill; 2 edition 1997 p 34. How to Cope with Culture Shock 2004 p1 retrieved from http://www.bbc.co.uk/dna/h2g2/A2848359 Human Resource Management 2008 McGraw Hill Company p1 retrieved from ccba.jsu.edu/ccba/faculty/facultyFiles/pborstor_Chapter%2020.ppt Kemp H. Williams; The Renewable Energy Handbook: A Guide to Rural Energy Independence, Off-Grid and Sustainable Living Aztext Press 2006 p 43 Klaus Schwab (Editor), Peter Cornelius The Arab World Competitiveness Report 2002-2003 Oxford University Press, USA 2003 p 24 Lomax Stan; Best Practices for Managers and Expatriates: A Guide on Selection, Hiring and Compensation Wiley 2001 p 23 UAE Free Zone Investment Guide EPH Ltd 2005 p 13 Weil, David N., “The Economics of Population Aging” in Mark R. Rosenzweig and Oded Stark, eds., Handbook of Population and Family Economics, New York: Elsevier, 1997, 967-1014. Read More