International Business

Running head: INTERNATIONAL BUSINESS
International Business
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1INTERNATIONAL BUSINESS
Introduction
Aiming to trace the subtle nuances associated with the idea and practice of International
Business, this paper strives to delve into an in-depth analysis of various factors. This essay will
endeavor to analyze the factor of culture and its various implications in the global market and
context. The following paragraphs will try to employ the model proposed by Hofstede and
account for the importance of various skills for global managers. Further, it will also delve into
an analysis of CSR and ethical process in UK and Australia. These paragraphs will also try to
provide strategy for global human resource management.
Discussion
1.
Culture in a global context
The notion of culture is comprised of innumerable assumptions and ideologies (Bohm,
2013). With the gradual development of the concept of globalization, the prevalent sense of
culture has also amalgamated the various cultural premises and consumerism (Pieterse 2015). As
the term depicts, international negotiation refers to the phenomenon of negotiation and
interrelation between various countries. This process also helps in the transference of various
cultures and ideologies. These negotiations also help in resolving the various issues related to the
climate (Fischer and Geden 2015). Recent studies have projected that for the process of
international negotiations to occur, the various cultural and strategic arenas must amalgamate
with each other (Khakhar and Rammal 2013). Cultural amalgamation can also bring in business
negotiations. The myriad cultures and values pose problems for the proper concretization of
international negotiations and affect the cross-cultural business transactions (Peleckis 2013). In

2INTERNATIONAL BUSINESS
order to ensure a smooth functioning of the international interactions, it is essential to erase the
differences by getting acquainted with myriad cultures.
Geert Hofstede had propounded certain ideologies about the various nuances of global
culture. He had even propounded the importance and need for attaching an international
dimension to culture (Geert Hofstede 2019). The model discovered by Hofstede discusses about
the various problematic areas that inhibit the proper interaction between culture and the global
environment. He had identified four major areas namely, authority distance, avoidance of
uncertainties, the battle between collectivism and individualism, femininity versus masculinity as
well as futuristic orientations (Rienties and Tempelaar 2013). The problem areas and the model
proposed by Hofstede can be analyzed through the analysis of two countries. For example, in
Japan, the aspect of power distance is quite apparent because it exhibits a score of 54 and is
hierarchical in nature (Hofstede Insights 2019). Further, Japanese society also exhibits major
traits of both collectivism and individualism, thereby granting recognition to each aspect.
Exhibiting a masculine orientation towards competition and achievements, Japan scores 95 in
this index. For the indices of uncertain avoidance and futuristic orientation, Japan scores high
points to emerge as a strong country (Hofstede Insights 2019). UK has a lower score in the index
of authority distance meaning that UK does not harbor inequality. UK values individuality more
than collectivism. This country exhibits a relatively lower score in futuristic visions and
uncertainty avoidance. As opposed to this, UK is seen to be a masculine society focused on
performance and result (Hofstede Insights 2019).
2.

3INTERNATIONAL BUSINESS
Ethics and Corporate Social Responsibility
The ethical policies and corporate social responsibilities of different countries varies
with each other. While ethical considerations refer to the various principles that reflect upon the
moral and social arenas, corporate social responsibility refers to the social and environmental
responsibilities and policies that countries or organizations have to follow to ensure balance
(Cheng, Ioannou and Serafeim 2014). The government of UK had enlisted the criterions that any
business enterprise needs to follow the ethical standards of the country and remain committed to
these standards while maintaining an ethical dimension towards the employees (GOV.UK 2019).
In addition to this, the government had also enlisted that organizations need to ensure that they
guarantee the implementation of ethical policies and principles and not just speak about them. In
addition to this, the government of UK had also elaborated about the stringent Social
Responsibility policies that need to be followed by business enterprises. UK’s CSR policies
inculcate the environmental aspect where business organizations are deigned to manage waste
products. It also includes the humanism aspect where enterprises are supposed to ensure the
well-being of others and organizations need to engage in community services to raise funds for
societal causes (GOV.UK 2019). On the other hand, the government of Australia had enlisted
certain major areas that identify the ethical role and social responsibility of the business
organizations. There is a separate commission that looks into the implementation of fair trade
rules and aspects throughout the nation. The rules of the government encompasses the various
aspects including suppliers and consumers (Business.gov.au 2019). Similarly, there are policies
for CSR that organizations need to follow. The government lays down that organizations need to
submit sustainability reports about environmental impacts and reports about community
participation.