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Business Management and Strategic Management - PDF

   

Added on  2021-05-31

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Running head: BUSINESS MANAGEMENT AND STRATEGIC MANAGEMENTBusiness Management and Strategic ManagementName of the Student:Name of the University:Author note:
Business Management and Strategic Management - PDF_1

1BUSINESS MANAGEMENT AND STRATEGIC MANAGEMENT1. Given the advantages of international diversification, why do some firms choose not toexpand internationally?It is undeniable that there are numerous advantages of internationalization. H0wever,this is also to note that while there are a huge number of advantages of internationaldiversification, it is also true that there are few risk factors associated with it as well. The costto start entering into the international level is high and also the taxes could also be higher forcontinuing to operate the business in international level. It is indeed quite expensive (Abel-Koch, 2013). The expenses of a company would consist of payroll; start up fees that arerelated to start the business and the office space. Along with this, there are insurance fees aswell that tend to be very high for the companies that are situated outside of that very countrywhere the business is going to start up. Furthermore, there is a high risk based on where thecompany set up its business shop, as you never know what the country government will doalong with the wars. Business therefore has to keep in mind the religions and the employeeswhile setting up in the international market that has the potential to hinder the businessoperations. 2. Ventures in foreign countries without strong contract law are more risky, becausemanagers may be subjected to bribery attempts once their firms’ assets have been invested inthe country. How can managers deal with these problems?It is true that ventures in foreign countries without strong contract law are more risky,because managers may be subjected to bribery attempts once their firms’ assets have beeninvested in the country. When it comes to the aspect of bribery, it is very vital to understandthe fact that bribery is always a two way street that consists of both giver and the taker at thesame time. Hence, it can be said the companies get the choice when it comes to the questionof paying bribes. In most of the cases, it is really possible to operate the businesses without
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