Essay on Multinational Corporation: International Marketing Plan

International marketing or business is uniquely different from the local market because the product price, place and promotion is vastly different from what is been offered to local customers (Johansson, 2000) With the emergence of the information technology, cross border marketing has never been a distant dream. However, it has never been easier even for giant multinational companies to face challenges that come in international business. The biggest challenge comes from the culture which varies from country to country.

D2) Evaluate the impact of cultural differences on international business performance in the international market.

Which is cost difference determines the patterns of international trade. Absolute advantage is trade benefits when each country is at least cost producer of one of the goods being traded. In the 1800s, David Ricardo developed the theory of comparative advantage to measure gains from trades. This theory is based on comparative advantage and it states each nation should specialize in production of those goods for which its relatively more efficient with a lower opportunity cost.

Some of the factors are: demand and supply, price mechanism, the analysis of production costs, the importance of market structure, trade and the competitiveness in the global economy.

A multinational corporation (MNC) is a business firm incorporated in one country that has production and sales operations in several other countries.

Venturing into a foreign market for business mainly involves the crossing of borders and cultures of a host country but does the importance of understanding and behaving in accordance with their business cultures truly impact the success of a firm entering the market? International business enters foreign markets to further expand their reach towards the global markets. Naturally, entering a foreign market with different cultures and regulations would necessitate one 's firm to understand the local culture and address any cultural differences. Having a universalist perspective is inappropriate or frown upon as it limits

The business model, into this age of information, has integrated itself with many cultures. One of the results of this globalization is development and research into international business and work related culture. In a recent paper by Mooij & Hofstede (2010), it found focus on researching and investigating culture is becoming more popular. Looking at the exponential growth and influence of international, more International Managers are becoming aware of the impact and importance of national culture on organizational culture.

One of the challenges for international expansion is to know how to deal with cultural difference. “Some companies tend to overcompensate and become oversensitive to local culture - enough so that they lose the identity of the brand that made them successful in other markets.” (Top Challenges for International Expansion, 2012) Culture is a necessary item that need to consider because the awareness of real market needs is increasing. The most difficult section is to know how to modify the products according to different countries. At the same time, the firm also need to be careful cannot lose their core value. It is hard for the firm to maintain the balance when expand the firm internationally. The failure of many ventures and product launches in foreign countries is be traced largely to the marketer’s lack of familiarity with the foreign culture, customers and languages. (Marketing,

INTERNATIONAL MANAGEMENT: CULTURE, STRATEGY, AND BEHAVIOR, EIGHTH EDITION Published by McGraw-Hill, a business unit of The McGraw-Hill Companies, Inc., 1221 Avenue of the Americas, New York, NY 10020. Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved. Previous editions © 2009, 2006, and 2003. No part of this publication may be reproduced or distributed in any form or by any means, or stored in a database or retrieval system, without the prior written consent of The McGraw-Hill Companies, Inc., including, but not limited

According to the text, regardless of the speed and depth of globalization large differences in national culture persist and no multinational manager can succeed without a deep understanding of the national culture in which they do business (Cullen & Parboteeah p. 24). The potential for conflict, misunderstanding and miscommunication is enormous because customs,

According to the works of Chaney & Martin (2011) and Harris & Moran (2000), they agree that international management skills are in need for the increasing scope of international trades and investments. A large number of multinational companies have expanded their businesses through both developed and developing countries. Some of the business invest directly and others are partnership arrangements and strategic alliances with domestic operations. Their studies show that independent entrepreneurs and small businesses have started investing and competing in the world marketplace. Thus, to acquire corporations’ objectives, there is exceedingly a necessity for the development of strategic framework for cross-cultural management and communication in the current competitive global market. Chaney & Martin (2011) also noted that, cultural awareness and cultural differences are strongly important to the multinational corporations’ success. A good understanding of the culture where business is implemented can make international managers productive and effective.

Globalization has created a great amount of advantages and disadvantages for businesses of all different varieties. International business relationships have allowed companies to operate more efficiently by moving manufacturing to foreign nations that offer cheaper labor (Petri, 1991). Additionally, the business environment is greatly impacted by global forces that may put organizations at a disadvantage (Lowe & McCrohan, 1989). When companies operate on a global level, they are expected to respond to the cultural and economical dynamics of the nations in which they are conducting business (Petri, 1991). Failing to acknowledge such dynamics can ultimately discourage foreign consumers from purchasing goods and services that are offered from international businesses (Lowe & McCrohan, 1989). Moreover, organizations face larger competition as well as exchange risk.

Under the increasing globalization, organizations have to deal with new challenges in order to maintain sustainable competitive and become accustomed to the changing global market. The developing globalization has promoted companies establish their organizations across different countries and expanded new business in multicultural environment. Culture seems to be a key factor of the relationship, interaction and communication between people from different countries when companies become multinational. Expatriation is regarded as an important part of international human resource management (IHRM) in multinational companies (MNCs). A range of research has showed that expatriation is an essential area of international

I have always been fascinated with developing countries, especially in Africa. I first passion was learning about the culture and various religions in central African and other regions on that continent. When it comes to risk factor, China and African has a lot going and against it due to the develop pollution that settles on this vast land. Risk is the ability to gain or lose something that has value. Ideally it is the intentional interaction with uncertainty which is an uncontrollable and unpredictable outcome. When it comes to finance and trading, you are leaving it up to a gamble, which makes it a risk. In addition, when compared to developed country such as England, you will see the difference in the risk factor. The ability to take risk has raised has altered the development and functions of technology, which it has enabled us to fully analyse a certain risk and make the most appropriate decisions before undertaking it. This article will examine the risks reports of five different countries in three different continents, sources of the risks and their impact.

The impact of management in the globalization of business. The multinational corporation The impact of globalization on international business International business refers to a wide range of business activities undertaken across national borders. Along with rapidly increasing globalization, international business has become a popular topic and has drawn the attention of business executives, government officials and academics. International business is different from domestic business. At the international level, the globalization of the world economy and the differences between countries present both opportunities and challenges to international businesses. Business managers need to take account of the globalised business environment when making international strategic decisions and in managing ongoing international operations Globalization simplifies business management in the world. This is due to the advancement in technology, transport, communication, education, and regulations of trade that makes trade fair to all parties. This attracts more people to engage in international business and international trade. Managers within the global face a lot of challenges due to high competition in the industry, good decisions must be made in order to satisfy and maintain their customers and attract more customers for their products. Culture shock experienced by managers who work abroad Traditionally MNCs have sent one of their top performers abroad for senior roles abroad.