Differences among nations affect international business Essay

This paper describes some of the ways in which loving, cultural, economic, legal and political differences among nations affect international stemma. Specific real mankind showcases of the described differences are also provided.Doing business in the international marketplace mandates taking into account some very hard to overlook social differences amidst countries. For instance, if trying to market and sell a product in a field other than where the company is based, the company must take into account the verbiage differences for such things as packaging (Ebert, R. J., 2003), use instructions, marketing materials, web site presence, and customer care and support. A marvelous real world example of overcoming social differences in order to do business in the international marketplace is provided by the company Ikea (Ikea, 2003). Ikea does business in over thirty-four countries.Much of Ikeas furniture requires the purchaser to assemble them. This means that all the instructions that are included with the same merchandise must be written for each of the countries that it does business in. Another example of Ikeas adeptness at handling social differences is their website (www.ikea.com). The company has links from their global website to translated websites for each company they do business in. in that respect are some other, not so obvious, cultural differences as well. Such things as general consumer preferences whitethorn be very different in the head rustic. An example of these consumer preferences would be what is considered standard staples in the country. Another example would be shopping habits, such as time, frequency and consumer outlet type that is generally favored (Ebert, R. J., 2003). Yet another example would be if the standard work day isnt the same as a standard workday in the country where the company is based, this could affect such things as the hours of operation of a store-front or office. A terrific example of general consumer prefer ences is brought to light by McDonalds (McDonalds Inc, 2003).McDonalds does business in over fifty-eight countries. In order to gain consumer credibility they generally provide to a charity in the countries they do business in. In the United States the charity that they prefer is the Ronald McDonald House, which concentrates on providing for the needs of children. In Europe the charity of choice for McDonalds is a community football game (United States soccer) due to the heavy influence that the sport has in the European countries it does business in. There are also some other cultural differences in European McDonalds, such as the menu beer is served as a beverage.Economic differences are probably the first hurdles that a company will recognize piece of music planning to support their trade in a irrelevant country. These differences will be extremely obvious if, for instance, the company of interest is based in a country with a Market or Mixed Economy and wishes to do business in a country with a Planned Economy. Economic differences shtup include things such as monetary trade rates, the countrys banking policies and government involvement in an industry (Ebert, R. J., 2003). China is a great example of doing business with a Planned Economy country (Premier Star Company, 2003). In China foreign companies can not own land, rather it must be leased or rented from Peoples Republic of China.Legal and Political differences are the biggest players in doing business internationally. A government in a foreign country can determine how an outside countrys business is run in their country by controlling such things as the follow of the outside countrys companys goods in their country by using quotas, tariffs and subsidies (Ebert, R. J., 2003). The government can also control the payroll and employee breeding costs as well as initial capital expenditures of an outside countrys company, by requiring that a portion of what the company sells in their country must also be produced there.This may require employing local people and possibly educating them, as well as setting up a presence, whether it is a manufacturing plant or another type of facility that is required for the company to produce its goods. There is also the matter of complying with the target countrys business laws and regulations. This requires that the company expand its legal team to include knowledge of the remote government in order to protect itself. Many things that may be legal in one country, may be illegal in another. Cuba and the United States is a good example of legal and political differences (Haar, J., 2002). A United States company can not do business with Cuba, as it is illegal in the United States to do so.ReferencesEbert, R. J. (2003). Business Essentials. Upper Saddle River, NJ Prentice Hall.Ikea (2003). http//www.ikea.com. Sweden Inter IKEA Systems B.V.McDonalds Inc. (2003). http//www.mcdonalds.com/corporate/social. United States McDonalds Inc.Premier Star Comp any (2003). http//chinaunique.com/business/law_main.htmlland. Rochester, NY Premier Star CompanyHaar, J. (2002). http//www.miami.edu/nsc/pages/newsupdates/Update53.html. Miami, FL University of Miami