Contemporary Issues in International Business

International
Business

Contents
INTRODUCTION...........................................................................................................................................3
MAIN BODY.................................................................................................................................................3
Contemporary issues relating to International Business.........................................................................3
Identification and Evaluation of the global context in which International Business must function.......4
Alternative modes of entry in Foreign Markets.......................................................................................5
Reasons to internationalize and alternative theories of internationalization..........................................6
Impact of multinationals on Home and Host nations..............................................................................7
Analysis and evaluation of data on country markets...............................................................................8
CONCLUSION.............................................................................................................................................10
REFERENCES..............................................................................................................................................11

INTRODUCTION
International Business refers to the conducting of Business Activities in the countries
other than the Home Country. Therefore, it is quite important from the point of view of the
organizations so that they are able to target International Expansion and thus aim for enhancing
their overall level of profitability which will help them a lot to be able to attain the future goals
and objectives quite properly (Chia and Kern, 2020). It is also very important for the Businesses
that they are able to make the use of the opportunities which exist in the Business Environment
so that they can attain their future goals and objectives. This report will focus on Tesco. It is a
British Multinational Retailer which provides a wide variety of goods and services to the
customers in the market. It is planning to expand its business operations to South Africa as a part
of its expansion strategy. In this report, a detailed and specific discussion will be made on the
way in which the use of the Business Opportunities can be made in the Foreign Markets for
enhancing the overall level of profitability.
MAIN BODY
Contemporary issues relating to International Business
When the organizations want to expand internationally and therefore want to enter into
International Business it becomes quite important for them to make sure that they are able to
assess the different types of issues which are related with International Business (Ciampi and
et.al., 2020). The issues which are related with International Business are explained as follows-
 Different trade patterns- In International Business, there are different types of trade
patterns in various countries. Therefore, it takes time for the organizations to adjust
according to them. For expanding to South Africa, Tesco has to assess these trade
patterns which will be quite helpful in formulation of a detailed strategy to be applied for
the purpose of attainment of the trade goals and objectives.
 Regulatory measures- International Business has an issues relating with the regulatory
measures which can thus create an impact on the Business Organizations. Every country
has its own set of regulatory measures which are required to be followed if the Business
Organization has to be successful there. For the purpose of targeting an expansion in
South Africa, it is quite essential that Tesco is able to make sure that it adjusts its
operations according to the regulatory measures and therefore this will be quite helpful in
ensuring that the management of the work can take place quite appropriately.
 Lop Sided Development of Developing Countries- There is a Lop Sided Development
in Developing Countries which thus affects the Businesses. South Africa is a Developing
Country and thus for Tesco it is important that it prepares a detailed strategy to be applied
there which will be quite helpful in ensuring that the company is able to work in a right
manner and therefore attain its future goals and objectives in a proper manner.

 Economic Unions- Economic Unions in various countries are not so strong and thus as a
result this also affects the Businesses of the Companies who want to target International
Expansion (Ciasullo and et.al., 2020). In the context of Tesco, it is quite important that
the assessment of this problem is done so that the right strategy can be used to
internationalize the business operations in South Africa.
 National Policy of Development- This policy has been implemented in the different
countries and therefore it has multiple provisions which are required to be considered by
the Businesses so that they are able to function in a smooth manner (Gamage and
Priyanath, 2020). For Tesco, it is necessary that its use can be made so that the company
is able to manage out its particular needs and requirements in a proper way in South
Africa.
 Procedural Difficulties- This refers to the problems and issues which are faced by the
Businesses when they are expanding their operations internationally. These arise due to
the lengthy procedures which are required to be fulfilled by the companies so that they
can manage out their overall operations in a proper manner quite effectively and
efficiently. In the context of Tesco, it is absolutely important that the assessment of these
particular problems and issues is done in South Africa so that the company is able to set
up its operations in a right way in the country.
 Other Problems- There is other problems as well which are faced by the firms while
expanding their operations internationally. For Tesco, it is necessary that the assessment
of these particular problems can be done which will help the company a lot to ensure that
it is able to expand to South Africa and therefore manage its business operations quite
properly there so that the attainment of the goals and objectives can be done.
Identification and Evaluation of the global context in which International Business
must function
International Businesses have to identify the emerging global trends according to which
they must function. This is especially important because this will be helpful in ensuring that the
Businesses are able to enhance the overall profitability level quite effectively and efficiently. The
global trends which are required to be considered by Tesco in South Africa are-
 Dynamic Business Environment- Business Environment of the organizations is quite
dynamic in nature which means that it can change quite quickly and therefore it becomes
quite important for the Businesses that they are able to make the required adaptations
with the changing nature of the Business Environment by ensuring that they keep up with
its needs and requirements (Gao and et.al., 2020). Tesco therefore is required to adapt to
the Dynamic Business Environment in South Africa which will be quite helpful for it to
be able to identify the way in which the enhancement of the profits can be done.
 Adapting to the Digital Era- The present Era is a Digital Era and therefore it is quite
necessary for the Business Organizations to make sure that the required adaptations can
be made so that the customers are provided good products and services which can thus