Managing Across Borders: Challenges for Global Managers - Report

This report provides a comprehensive overview of the challenges faced by global managers operating across borders. It delves into the complexities of the political environment, highlighting issues such as political instability, changes in government policies, and risks like confiscation and domestication. The report also examines the economic environment, discussing the impact of international laws, currency fluctuations, and environmental concerns on business operations. Furthermore, it explores the social environment, emphasizing the importance of social responsibility, cultural diversity, and the influence of social infrastructure on business growth. The report concludes by emphasizing the need for global managers to be well-trained to effectively navigate these multifaceted challenges. It also highlights the importance of understanding the nuances of international business, including trade practices, cultural differences, and the impact of global events like health crises and wars. The report cites several academic sources to support its findings, providing a robust analysis of the key factors that affect global business success.

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Managing Across Borders-

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Introduction:
A person positioned as global manager should have knowledge of domains existing in
world. A successful global manager possesses all the key skills required to face the
challenges. The report will define issue like political rules, social responsibility and economic
environment. A global organisation success depends on various factors like management,
policies and key areas. There is huge amount of risk present in all areas of business.

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Challenges faced by global managers
In political environment:
A permanent risk for international business existing is political uncertainty and instability.
Emerging businesses which provide huge opportunities face more challenges politically then
an established business do. Changes in government brings changes in policies, regulations
and interest rate that proves damaging to foreign business and investment and creates
difficulty for global managers to come out with a solution. Political Issues also occur when
ill-defined and unstable policies are present in market (Adger, et ol, 2001). Global managers
have to deal with regularly with some risk like confiscation, expropriation and domestication
when doing international business. Boycotting of trade or products by one country also
creates difficulty for global manager to handle business in other countries. Sometimes
extreme nationalism adopted by any country creates issue for managers in that country, as
survival becomes difficult (Krishna, Sahay, and Walsham, 2004). Instability of government
in a country make managers confuse to adhere to which policy which directly affects
company profits. Global trade practices also include undefined cultural practices like
corruption in different countries, which proves challenging for new business. In some
countries government has convention of scattering of news and data of organization to public,
which organisation may not want. Other risk can be violence, terrorism, cybercrime, import
restrictions and price control practices affecting company global business.
In economic environment:
Global managers not having information about international laws and regulation creates
negative effect on freely floating of its funds. Numerous investment opportunities available
for organisation will be denied if there is restriction on free flow of funds. Many countries in
world do not allow business with other companies if they are not following international

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business laws. Energy and environmental security also nowadays existing, due to which extra
fund for disposing waste and green environment practices is required by global manager
(Ghoshal, 1987). A proper disposal waste management policy helps managers to attract
customer towards it. Poverty in a nation also decreases the growth of an organisation because
lower availability of fund will not allow people to go for another country's product. Global
health crisis also affects a business existence because unhealthy population will be reluctant
to purchase new products and therefore hesitant to adhere to new practices (Handfield, and
Nichols, 2004). Currency and exchange rate of every country affects a manager decision
regarding price policy for products and services.
In Social environment:
Social responsibility is an obligation which every organisation has to fulfil to create a balance
between economy and business. Every business has to follow all the customs, beliefs and
practices existing in an environment (Lubchenco, 1998). There are numerous issues globally
which have to face by managers because of multicultural society, diverse population and
unique approaches towards every business. If a business refuses to adapt towards different
customs and beliefs then business sales will drop down by significant percentage and will
create difficulty for business to grow. In a country where social infrastructure is lacking like
housing, schools and basic amenities creates difficulty for a manager to grow business. It may
account for huge investment and costs if organisation tries to provide all amenities.
Government interference in decision of company also creates an issue as taking permission
each time may affect the business. In some countries attitude towards foreign investment is
still negative. Thus imposing stringent rules for a business and hampering its expansion
(Stokols, 1992). The various issues like war between trading and home country also stops

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trading between them, corrupt leader leading in trading country creates difficulty for global
manager to expand business.

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Conclusion:
From the above report, various factors affecting business are discussed like political,
economic and social affects business existence globally. Political issues create difficulty in
survival of business by imposing different regulation. A social issue hampers the growth of
country due to various customs, beliefs and practices adopted by trading country. And in last
economic issues creates difficulty in trading freely and fund requirement of an organisation.
Sometime funds are not easily available globally to invest in some business and many more.
Thus global manager should be provided training with every tic-tacks of business to deal with
above issues efficiently.

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References:
Adger, W.N., Benjaminsen, T.A., Brown, K. and Svarstad, H., 2001. Advancing a political
ecology of global environmental discourses. Development and change, 32(4), pp.681-715.
Ghoshal, S., 1987. Global strategy: An organizing framework. Strategic management
journal, 8(5), pp.425-440.
Handfield, R.B. and Nichols, E.L., 2004. Key issues in global supply base
management. Industrial Marketing Management, 33(1), pp.29-35.
Krishna, S., Sahay, S. and Walsham, G., 2004. Managing cross-cultural issues in global
software outsourcing. Communications of the ACM, 47(4), pp.62-66.
Lubchenco, J., 1998. Entering the century of the environment: a new social contract for
science. Science, 279(5350), pp.491-497.
Stokols, D., 1992. Establishing and maintaining healthy environments: Toward a social
ecology of health promotion. American psychologist, 47(1), p.6.