Global Issues in Business and Tourism

This report discusses the challenges faced by businesses in the international market and provides recommendations to overcome them. Topics include company structure, communication difficulties, cultural differences, competition, foreign laws and regulations, and currency rates.

Global Issues in
Business and Tourism

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
The global issues that must be considered, before leaping into international operations......3
Suggest some ways of overcoming these challenges.............................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Global business is a kind of environment in which organisations operate their functions in
several countries across the world and it is different from the international business that tends to
sell products but only has facilities in the home country. Globalisation is the process which is
useful in increasing the interconnection among several nations. It is helpful in the free trade of
goods and services within the international market (Della Lucia, Giudici and Secchi, 2020). This
procedure of globalisation helps in enhancing the production of commodities. Further, it is
helpful in the enhancement of communication and transportation. The report leads to cover
concerning challenges which are being faced by the organisation at the time of entering in the
international market and some recommendations are also provided to tackle these challenges.
MAIN BODY
The global issues that must be considered, before leaping into international operations
The global world is moving towards the development and enhancement of trading
operations. They are also booming the operations and businesses in the international platforms as
it is essential for the companies to recognise their situation that may occur when they are
planing in terms of operating within the international markets. They also play an important role
to conduct the significant research and also improve the operations of business. Further, the
business operations are enhancing but it is important for businesses to be attentive at the time of
operating within the international market considering their laws and frameworks which are
different according to the country (Boonyasana and Chinnakum, 2020). Expansion of businesses
are useful to increasing the reach of business and also serve more to the customers. It is helpful
in improving the profitability of the business firms and some of the challenges that occur in the
path of the international operations are discussed below:
International structure of company: It is one of the biggest challenge which is faced by
companies at the time of entering into the global market. Here, the national companies of market
are aware regarding structure, location and other concerning aspects. Further, operating at the
international market is quite stubborn for the business to know regarding the overall structure of
the company. It is important to get knowledge about several structures which are appropriate
while working in the international plarform. It is also viewed that the challenges lie in the
various operations of the businesses. Furthermore, it is also challenging to manage the businesses

as the employees also come from the diverse background and due to which they face difficulty
regarding cooperation (Ristić, Bošković and Despotović, 2019). Therefore, it has been analysed
that the business organisation take assistance from the local experts in order to gain knowledge
regarding the structure which is appropriate for company.
For instance, Coca-Cola provide the best multinational structure as the company is
classified into different continents and each of them is led by the presidents who belongs from
the smaller or geographical divisions. Despite from the global reach, Coca-Cola and its products
tends to manage from the central location which is consistent across the world. Hence, it is
essential that it is not that simple for the business organisations to choose and determine things
over the structure which is helpful for them to do work and direct things effectively. It is also
analysed that the international composition of company is quite challenging for business
organisations at the time internationalisation.
Communication difficulties and cultural differences: To operate within the effective
manner communication plays an important role as it has been analysed that at the time of
entering in the global market it becomes challenging for the business organisations to
communicate. Further, there are several cultural deviation which is faced by companies and can
become barrier for them in the path of businesses at the time of operating in different nations.
The language barriers are also faced by companies at the time of communicating with their
suppliers, customers and employees (Ying and et. al., 2021). Despite from this, deviation in the
culture lead to significant issues in the operations of business. Here, all the employees come
from the diversified culture, so communication is the major issue for them.
The cultural differences lead to effect the demand for supply of the goods and services
which are offered by the business unit. Here, the need of the customers differ as per the culture
and nationality. There is a need to examine the wants of customers and market before launching
a new product. Here, the same product does not get work within the international market
(Rasoolimanesh and et. al., 2020). For instance, McDonald’s always bring changes in their
concerning products while taking entry into the new market. They also tend to assess the
preferences and taste of customers whom they want to serve. They make modification and
updates in products according to needs of customers as this strategy is being followed by the
companies at the time of entering in the foreign market. If, there is no communication among the

customers and company then they are not able to analyse the culture and then it will cause
several issues regarding the operation and cause loss of business.
Competition: It is one of the major factor which is being available in the domestic market
as it is essential to consider that there are several business organisations which are dealing in the
identical product and services. It is essential for the company to know about the competition in
the international market (Tichaawa and Lekgau, 2020). As there are many organisations that deal
in the same product or services where the customers trust on the concerning products and
services which is launched by the home company and already has existence. It is quite
challenging for the business firms that they need to counter. Hence, it may occur the chance to
face loss and the business opportunity gets fail.
The businesses also tend to find the overall range of the business in the significant
countries to which they are targeting to expand. It is essential to organise the research regarding
the overall competition and the need of market. It has been analysed that the competition lead
towards the success and failure of business. For instance, Marks and Spencer tend to analyse the
market needs and also help their marketing and production department to serve them as per their
necessity.
Foreign laws, regulations and currency rates: The rules and legislations of the different
countries are diverse in nature and for this, it is essential to note that there are several challenges
which are faced by company due to the foreign laws. It is essential to prominently know about
the legislation and also get understanding about the local laws and norms which can be
controlled by the target market (Paiva and Carvalho, 2019). Apart from that, navigating the legal
criteria, ranging from the tax consequences to the trading regulation it is important feature for
any international company. Also, the conditions to trade is also accomplishable when the tariffs
and legal costs concerned with entering into the new market.
The employment and labour laws of several nations are quite diverse as they have to deal the
workforce as per their laws. Also, it is also seen that the currency value of different nation is also
challenging as they get fluctuates which is one of the most annoying international business issue
to regulate things. Considering the price fixing and payment methods are essential as the
currency rates fluctuation is the most challenging international business issue to address. All the
global organisation need to make exchange, rage monitoring is the critical factor of their
strategy. For this, the global economic volatility tends to make profit forecasting quite difficult

when the price gets fluctuated at the rapid rate. It is challenging to face the entry of company in
the foreign market.
Hence, these are the challenges which are faced by the organisation at the time of
entering into the foreign market and organisations need to know about the concerning challenges
and also consider of all the elements so that they can enter effectively.
Suggest some ways of overcoming these challenges
It is essential for the business organisations to consider the challenges which they face, as
there is always a solution which is available to the business firms that can help them to overcome
from these challenges. It is critical to understand the several methods which is helpful for the
business organisation to come out from the challenges and operate in an effective manner
(Črnjar, 2018). There are several benefits which is obtained by businesses in order to operate in
the international market. Some of the ways to overcome from the challenges which are
mentioned as:
 The organisation need to conduct proper research and development program which is
concerned with the structure as it is available to market. It is essential for the company to
take assistance from expert who is local to the expansion location because with proper
direction company is able to run their functions in a precise manner as it is useful for it to
earn more profits (Tasci, 2017). Selection the best way to function in businesses will
healthful for the further operations.
 It is also important to opt the culture at the operational phase of business and also note
that they need to understand the effective compliance of mechanism of the place and also
gain proper knowledge regarding the market which is beneficial for the businesses to
work precisely. Understanding the culture helps to meet the needs and wants of the
customers.
 Here, the management team of a business organisation need to acquire understanding of
the significant language that can be used by the businesses. It is also important for the
success of business to experience regarding the language as it is helpful to communicate
with the employees in an effective manner (Tchamy and et. al., 2020). Also, to
understand the culture and language of the geographical area where they want to operate
will enhance the profitability in
 business.

 The business must be aware of the marketplace conditions of area where it wishes to
function. It is critical to be aware of rivals who offer similar products and services. The
organisation should then devise solutions for efficient storage, transportation, and
logistics. It aids the company’s competitive advantage (Maxim, 2019). In addition, the
organisation should employ a pricing plan that is both successful and efficient manner as
it is helpful to attract the customers in order to gain competitive advantages.
 It is critical to understand the needs and desires of customers before providing successful
customer service. It is critical to serve clients according to their requirements. Customers
benefit from innovation since it allows them to serve them more effectively and obtain a
larger consumer base. Hence, it aids the revenue generation of an organisation.
 The company should adhere to a code of conduct that will allow them to work in
accordance with national laws and regulations. All of the rules and regulations should be
written down in detail, and the company should ensure that they are followed. They
should pay taxes in accordance with the law, as this will allow them to function more
efficiently.
These are the methods that assist the firm in operating efficiently. It will benefit the
corporation because they will be capable of making money. It will enable them to work more
efficiently and obtain a competitive advantage by targeting a larger number of consumers.
CONCLUSION
To conclude, it has been observed that international business refers to all business operations
that takes place outside of a country’s borders. It is an excellent strategy to grow company’s
operations and provide service to additional clients. It aids in increasing earnings and producing
high-quality goods. In this report, the discussion includes the several challenges which are being
faced by the business organisations at the time of expanding their businesses in the international
market. Further, the suitable recommendations are also provided in order to help from
overcoming the occurred challenges.

REFERENCES
Books and Journals
Boonyasana, P. and Chinnakum, W., 2020. Linkages Among Tourism Demand, Human
Development, and Co2 Emissions in Thailand. ABAC Journal, 40(3), pp.78-98.
Črnjar, K., 2018. Human Capital capabilities for sustainable competitive advantage in tourism
industry. KnE Social Sciences, pp.145-156.
Della Lucia, M., Giudici, E. and Secchi, D., 2020. Reshaping tourism: Advances and open
issues. In Humanistic Tourism (pp. 231-244). Routledge.
Maxim, C., 2019. Challenges faced by world tourism cities–London’s perspective. Current
Issues in Tourism, 22(9), pp.1006-1024.
Paiva, I.S. and Carvalho, L.C., 2019. The use of digital tools for the disclosure of sustainability
reports in the tourism sector. In Handbook of Research on Entrepreneurship and
Marketing for Global Reach in the Digital Economy (pp. 222-240). IGI Global.
Rasoolimanesh, S.M and et. al., 2020. A systematic scoping review of sustainable tourism
indicators in relation to the sustainable development goals. Journal of Sustainable
Tourism, pp.1-21.
Ristić, L., Bošković, N. and Despotović, D., 2019. Sustainable integral development of
agriculture and tourism in the Republic of Serbia. Ekonomski horizonti, 21(1), pp.57-74.
Tasci, A.D., 2017. Consumer demand for sustainability benchmarks in tourism and
hospitality. Tourism Review.
Tchamy, J and et. al., 2020. E-tourism in developing and underdeveloped countries: Case of
Cameroon. Frontiers in Management and Business, 1(1), pp.7-15.
Tichaawa, T. and Lekgau, R.J., 2020. Nature and characteristics of wildlife tourism in the
Kgalagadi Transfrontier Park. Acta Universitatis Danubius. Œconomica, 16(5).
Ying, T and et. al., 2021. Rethinking game consumption in tourism: a case of the 2019 novel
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