Monday, August 1, 2011

International Business: Help please..Although forces in the ...

International Business: Help please..Although forces in the foreign environment??
Although forces in the foreign environment are the same as those in the domestic environment they operate differently. Why is that?
Why do you think it is important to be aware of these forces?

They operate differently for several reasons one is because of foreign legal and political forces to be looked at there are about 20 countries to consider at one time all of these forces have to be taken in to account. Why do you think it is important to be aware of these forces? It is very important to make sure that the laws domestically and foreign are adhered to as they pertain to each country.

**Ok, I read the chapter, and I am still confused. They operate the same because they are both businesses trying to strive, however they are different because one works internationally and the other only within its own country. I don't know how to explain the rest. Any help would be greatly appreciated.

Every business has to take "the forces" into consideration, if you operate only in a domestic environment you only have to consider the domestic forces. Once you are going international you have to take the local forces into consideration.

An example:
if you start a plant in the United States it's quite simple to fire your labour force. In Europe that might take months and require hugh expensive compensation.
An all america company will not hesitate to hire someone, even if they are not sure they can keep him on the long run. In Europe they will only hire someone if they are sure they can keep him on the long run.

The situation is the same, the need is the same but they sill act differently.

Source: http://www.roleofinternationallaw.com/international-business-help-please-although-forces-in-the-foreign-environment-2.html

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