10 Amazing Ways to Tackle International Business Issues

International Business Issues

‘International Business’ sounds big, complicated, interesting and fun at the same time. What is it that makes the term sound so huge? Maybe the interest, may be interacting with different people, maybe its complications, it can be anything depends on what interest you in international business. The term is big not because of any other factor because it involves and includes the globe and its businesses. Would you want to know more about doing business across the border? Let’s start with understanding ‘International Business’ first.

What is International Business Issues?

International Business is business conducted across the globe. It includes a number of transactions and all different types of international business issues transactions. For example transfer of services, technology, products, knowledge and managerial skills and also finances to other countries in terms of loans. In short, it includes import and exports of goods and services.

Global Business or International business Marketing are two more terms International Business is known, called or referred to as. Some options of global business include the factors given below:

  1. Import and Export of goods and services.
  2. Production of goods on an international name and license in the host country.
  3. Initiating a joint venture in a different country with a company.
  4. Starting up a branch of producing and distributing goods and services in a host country.
  5. Giving managerial services to different international business issues companies in another country.

There are many more influencing factors for global business. Let us take a look at them and also analyze some features of international business issues.

international business

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What are the Features of International Business Issues?

  1. Huge operations

In international business issues are always conducted on a huge scale and not small because the goods need to be first supplied in the local markets and they sent or exported to global markets. Hence the operations are conducted on a huge scale.

  1. Combines global economy

Global economy combines a number of economies of different countries. For global business includes finance from a different country, infrastructure from a different country, labor from another one, etc. this brings economies of different countries together. Many international business issues get times the product is designed in one country, its parts are produced in another country; they are assembled in a different one and are sold in a completely different country. All this takes place in global business, where different countries come together to manufacture and sell one single product.

  1. Developed economies dominate global business

When it comes to global businesses obviously the developed and the bigger economies dominate the market or the global business. Markets or economies such as the United States of America, the European countries, and Japan dominate and control the global market completely. The businesses are not controlled by the economies directly however they are controlled by their Multinational Corporations or their MNCs. The reason behind their dominance is their huge finances, good technology, good international business research, and development, skilled human resource and good resources, etc.

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  1. Developing countries also benefit

The big economies definitely get stronger and better in the global market by dominating however even the developing economies start making profits and benefiting from the global business by participating. MNCs look for developing countries to outsource their production and their services to developing countries to make sure that they maximize profits by outsourcing to poor countries, in this way the poor and the developing countries get employment for their people this invites other currencies to the developing countries and creates opportunities for growing and developing better.

  1. Good competition

Though the developed economies dominate the global market even they have the fear of competition. Competition can come from anywhere for them, it can either be from equal competitors or from the developing countries. Developing countries because the developing countries can provide the same goods and services at lower cost and can help the MNCs maximize profits.

  1. Promotes technology and science

Because the developed economies use both science and technology to enhance and add value to their products and services they expect the same quality when they outsource their business to the developing countries they also educate them about the techniques, their technology and the science used for the goods and services manufactured by them. This also introduces science and technology to developing countries helping then grow.

  1. Little changes effect big businesses

In international business even the slightest change in economic policies, political international business environment, technology, etc have big effects on international trade. Because global business is very sensitive in nature and must be taken care of to make sure that the business activities do persist even along the changes. Thus the market needs to be researched carefully.

And the features and its benefits will continue till you don’t stop talking about it. However global businesses do face a number of issues with international business on settling, growing and flourishing in other countries or host countries. If you want to master in international business issues you must know about these hurdles and issues and also develop a knack of overcoming them in order to make sure business does not suffer.

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What Issues with International Business being Facing Currently?

  1. Legal issues of the host country

When you conduct trade you need to be familiar with the law and order, the legal terminology, and the legal barriers every country has in order to conduct business. You might be aware of the legal aspects of conducting business in your country however legal issues with international business differ from country to country. Hence in order to start the business in a different country or globally, you need to know about the law and order of conducting business in the host country.

  1. Issues of local and regional language

You definitely are aware of this fact. Your language is different than the languages spoken in other countries and other nations. Communications is one of the most important factors for any business. Only if you know how to communicate in their local and regional languages will you be able to do business in the host country, else you might have to recruit local people to help you with the business in the host country. Hence language will be one of the barriers or one of the issues with international business you might face in global business.

  1. Cultural issues with international business

Every nation, every economy grows and develops in different cultures. Sometimes culture can be one of the barriers or one of the issues with international business and MNC might face. For example, in some countries women are not given equal rights to men, which might not permit women working in a few nations and much more than that even. In such cases you might not find in safe sending your women employees to work in such places, even if the woman employee is extremely talented and can help turn situations you will have to make sure that she is safe first. A few cultures might take contracts as one of the most serious issues with international business may be more serious than a human being whereas in some cultures contracts are not at all serious. This creates problems in running the business smoothly.

  1. Keeping a watch gets difficult

The distance that is global distance makes keeping a watch and managing business very difficult. You might have started a production business or you might have purchased a property in a different country, whatever might be the case you cannot personally keep a regular track on your business from a distance. Without keeping a watch you might end up signing unfair contracts or unfair deals. You might not be able to make sure that the products that are manufactured are safe for people’s consumptions, which can be dangerous for your business and your brand name. To keep a watch you might have to work on the distance issues so that distance is not a huddle in conducting business.

  1. Political issues

A number of economies and cultures completely oppose MNCs and their existence in their motherland. This becomes a part of their politics, law, and order. Besides all the business, employment and development the nation will receive they do not allow MNCs into their system easily. Politics and culture here become a very big problem to enter into business in such nations. This stops or hinders global business and growth.

  1. Issues that arise socially

Common social issues include issues such as at war situations between two countries can stop and hinder global business. The two countries might be very good in a particular business and can good even better together; however they are at war situation with each other, this will restrict their global business as they would not like to get into business with each other.

The second social issue can be corrupt political parties with corrupt leaders do exploit MNCs and minimize their national growth. Similarly, if a country is ruled by the militants they do not encourage and entertain global business and restrict MNCs from entering their nation.

Another social issue can be the wrong attitude of the host company towards foreign business this attitude is visible in the rules and regulations laid down by the nation for MNCs. Too much of government interference in the working of the MNC is another drawback and a problem for global business.

  1. Lack of infrastructure in developing countries

In simple words, if the country or rather the host country is unable to provide basic infrastructure to the MNCs to conduct business it will make global business difficult or impossible. For example facilities for MNC employees such as resident complexes, proper schools and transportation facilities need to be provided. MNCs make sure that they and their employees have proper work atmosphere to conduct business. In case a country or a nation lacks these facilities they will not be able to work as global players.

  1. Issues related to ethics

Maintaining basic work ethics is very important when you are working in the corporate world. However, ethics might be different in different nations and countries. Well, we can simply name a few ethics and ethical issues every economy and every company faces.

  • Rules and regulations for employees are different in different countries and companies
  • Human rights differ
  • The work environment differs
  • Bribery and corruption issue
  • MNCs obligations for moral values
  • Safety of products
  • Rational product cost
  • Making sure local laws are followed
  • Local social institutional impacts
  • Return on investments need to be fair
  • Child labor problems
  • Forced labor issues
  • Safety and health of employees
  • Reasonable working hours
  • Reasonable wages
  1. Issues with the environment

These days environment and its precaution is a very big concern for every nation. Now MNCs that are banned in developed countries because the release of the waste of their industry for polluting their environment has set up their base in developing countries to run their operations and they are now polluting the developing countries. The release of hazardous nuclear waste in the atmosphere can cause huge social damage to the environment.

  1. Competition in the host country

Before entering a host country the MNC needs to study the competition it will face in the country. I mean off course just like the MNC business there might be similar businesses in the host country that might create competition for the MNC with similar offers. The MNC needs to think out of the box before they launch a similar business in a country that has a huge competitor awaiting them.


Problems and issues will never end the more you discuss the stronger they get. Hence the best way is to work around the problem. Dealing with issues the smart way can help you and your business grow not just locally but also globally. Most of the issues discussed above might be issues you face even in your own country while executing business. However you still continue to conduct business and are still managing to good great in your field, however here issues will be more and even stronger because global business is about doing business across the border.

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