The management of international organizations is definitely different from the management of domestic organizations because an organizations conducting business across borders must deal with the complexities of three different types of environment: domestic environment, foreign environment and international environment' (Batt, 1988, in Ball & McCulloch, 1999, p.31). Whether managing a multinational company or an import and export business, proper understanding of the international business environment is mandatory for the achievement of meaningful success. As such, it is important for managers of international organizations to understand the forces behind the operational characteristics of international environment.
[...] Such reference to workers' behavioral aspects has further been recommended by theory Y which poses optimistic view of workers as hard working, sensitive and cooperative. W.G Ouchi's theory Z which is based on studies of success of Japanese companies in manufacturing also lends credence to human aspect of management by suggesting the ‘coordination of people rather than technology in the pursuit of productivity' (Cole p. 29). Some of the motivational strategies which can be adopted by managers in international business environment include delegation, employee empowerment, and assertiveness. [...]
[...] Therefore, accumulation of foreign exchange reserves spells benefits to a country only to the limits that such reserves may allow the country to gloss over the effects of short-term fluctuations in the balance of payments. Labour regulations It is always important for managers of international business organizations to understand that regardless as to whether an organization is pursuing classical or contingency management styles, any assumptions which they hold have the potential of fundamentally affecting the environment and working arrangements in organization. [...]
[...] Therefore, the objective of this paper is to analyze the impact and consequences of the internal and external environmental forces in international management of organizations. Discussion International management is a complex process which involves directing the activities of a company in the exchange of goods and services across borders. The management of a company's activities in the international arena obviously comes with a fair share of competitive, technological, legal, cultural, economic, geographic, political and administrative challenges. Competitive challenges Companies which adopt keenly and professionally crafted strategies successfully overcome the stated challenges. [...]
[...] Such an occurrence is inevitable in the international business environment and it causes instability in real interest rates and capital inflows from abroad, effectively increasing the real exchange rates. The appreciation of interest rates will subsequently be coupled with increase in external debts, a situation that will dissuade investors abroad from holding more debts. This will lead to the interest rate cycle taking a different direction that will see reduced real exchange rates as a result of declined capital inflows. [...]
[...] Economic challenges For any pursuit in international management to be successful, due recognition must always be accorded to the fact that the goal of international business operations is to increase the value of the firm. Thus, exports for exports sake or any other arbitrary objectives cannot achieve much value for the company. The essence of international business is best captured by Kenen (1996) who states ‘exports in general and of a specific product are a good' in and of themselves while import in general and of a specific produce are not bad'. [...]
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