Issues in International Business

This presentation discusses the issues in International Business, requirements for business in Malaysia, mode of entry in Malaysia, and issues in business in Malaysia. It also covers the factors that organizations should consider in choosing a country for international business, such as demographic factors, human capital factors, environmental factor, and others. The presentation also talks about the different responsibilities that organizations should take in International Business, such as economic responsibility, legal responsibility, ethical responsibility, and philanthropic responsibility.


Issues in International
Business

 Globalization of business by an organization is known as International
business.
 International Business (IB) has many advantages with some potential issues
as well.
 Most of the large organziation have a vision to expend their business in
global market (Hill, 2008).
 Grants can face many issue in Malaysian market because of giant
competitor Colgate.
 Toothpaste is daily purpose product and it sales at every place. Therefore,
the company should consider different parts of Malaysian market.
International
Business


 There are different sources to take competitive advantage
for a firm, such as reputation, economic performance, value
added, people retention, and others
 Organization can improve these factors for taking
competitive advantage in the existing market.
 Toothpaste is a daily usages product, which is used
by the most of the people.
 Three main competitors in Malaysian market for toothpaste,
which are:
 Darlie (market share is 31%)
 Colgate ( Market share is 60 %)
 Sensodyne ( Market share is 5 %)
Competitive advantage to
Grants


 Advice by constant or professional about the
business
 Acquire industry related licenses and requirements
 financial rate should be know by the grants
 create and secure distribution premises
 Human resource and management for hiring workers
 Conduct Intellectual Property rights based on
Malaysian government
 Tax planning and registration is necessary for start
a business in Malaysia
Requirements for business in
Malaysia

 Organization should consider different factors
in choice of country for international business,
such as demographic factors, human capital
factors, environmental factor, and others.
Malaysia is select for business

 The grants of Australia should know about
different factors as mentioned in the below
diagram.
 Grants should consider different, local market
for increasing sales with the help of distributors
 The company should create different
distribution centre for better facility for buyers.
Information about the Malaysia


Mode of entry in
Malaysia
 Partners should have
knowledge about the
market of Malaysia.
 Distributors should
be properly
managed
 Products and
services
 Consider buyers in
local and national
level


 1. Set clear goals for the toothpaste launch
 2. Research Malaysian market and launch at proper
places, such as supermarkets, local shops, and many
others
 3. Study about the competitors in the Malaysia, such
as Colgate, Sensodyne, and Darlie
 4. Choose supermarket for mode of entry as well as
local shops, because toothpaste is daily usages
product
 5. Figure out your financing needs and develop the
strategy document
Grants should take to implement its strategy of entry mode


International Business
needs
 Economic
responsibility
 Legal responsibility
 Ethical
Responsibility
 Philanthropic
responsibility

 Ethical issues: IB requires strong ethics to work in
international market. reputation of organization makes a
huge business in international market. Grants use their
reputation in Malaysian market.
 Legal Issues: different countries have different laws for
starting of business (Buckley, 2016).
 Social Issues: It is a basic need to implement IB in host
country and they should build schools, hospitals, and many
other things.
 Labour Issues: Labour is huge factor, which affects
international business. Malaysia is good for business as it
have low labour cost.
 Environmental issues: global warming is increasing data by
day. Therefore, it is necessary to follow international
standards (Shenkar, Luo, and Chi, 2014).
Issues in Business in
Malaysia


Jurisdiction
 International business
should consider
primary issue, such as
jurisdiction
 They should have legal
body to make decisions
 Organizations should
follow legal systems of
various countries to
develop their business


Intellectual Property
 Intellectual Property (IP) is
uncertain in different legal
jurisdiction
 In case of IB, copyrights and
trademarks are mostly
considered
 E-business should follow
certain steps to secure their
copyrights, which is related
to their website.
 They should registered their
trademarks in each country
in which a business operated


Taxes and securities
 Start a business with legal
approval of the target
country's legal body or
exchange commission
 IB should have consent of
a large number of
different legal authorities
 Taxation is a complex
situation and it make
huge difference in profits
of company (Trigg, and
Trigg, 2016).


Human Rights
 It is necessary to improve
human rights and respect
basic human rights of
host countries
 There should be less
discrimination and
provide freedoms to
employees
 Create a good working
environment in
organization to increase
performance


Social Issues in
Malaysia
 Because of corrupt leaders,
military rulers, or party
pose a serious threat for IB
 War make serious issues in
between home country and
host country international
business.
 Host companies creates
special rules for IB
 Sometime government
interfere in IB as a partial
owner


Environmental Issues
 Many operations generates
harmful hazards, which
makes effects on human
activity
 Environmental issues can
be a reason of failure of IB
 There are many standard at
different levels, such as
local, national, and
international standards to
overcome environmental
effects from industries.


Labour Issues in
Malaysia
 Child labour is restricted in
Malaysia
 Forced labour is prohibited
by host countries
 Health and safety issues
must consider by companies
 Suitable working hours are
necessary
 Proper payment should
deliver to labour based on
their working hours (Vagts,
Koh, Dodge, and Buxbaum,
2015).

 Hill, C., 2008. International business: Competing in the global
market place. Strategic Direction, 24(9).
 Shenkar, O., Luo, Y. and Chi, T., 2014. International business.
Routledge.
 Johnson, D. and Turner, C., 2010. International Business:
Themes and issues in the modern global economy. Routledge.
 Vagts, D.F., Koh, H., Dodge, W.S. and Buxbaum, H.L., 2015.
Transnational business problems. West Academic.
 Trigg, D. and Trigg, M.C., 2016. International business–
operating abroad. In The Global Business Handbook (pp. 35-
48). Routledge.
 Buckley, P.J., 2016. The contribution of internalisation theory to
international business: New realities and unanswered
questions. Journal of World Business, 51(1), pp.74-82.
 Buckley, P., 2017. International business. Routledge.
References

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Any Questions ???