International Business

604 Words2 Pages
Doing business overseas requires the company to adapt to local laws and conditions in every country in which it operates. There are two steps that the organization should follow in order to prepare for doing business around the world. The first is that the company needs to have a set of guidelines for conduct that is consistent throughout the entire company. This would include a code of ethics that sets a minimum standard for behavior, regardless of what laws the company is subject to. Standardizing conduct and ethics throughout the organization helps to insulate against differences in laws and codes of conduct around the world.

The other strategy is to work with people who are familiar with the laws of the foreign markets. There is little hope that a domestic company can become expert in the laws and ways of doing business in dozens of foreign countries. Thus, it is necessary to employ a local team, accounting team and perhaps even local teams for management and for human resources consulting. Many firms seek to reduce the risk associated with foreign markets by utilizing joint venture partners, as those partners have a much high degree of local market expertise than the American company could possibly have. Such an arrangement allows the American company to focus on its strengths marketing, brand building, and product development while leaving many of the operational issues like hiring, legal and accounting to the local partner (Clark, 2012).

There are many issues
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