Problems in International Business

There are many Problems in International Business. The restraining forces slow down the progress of companies that take up International Business. The restraining forces are :

  1. First Main Problem in International Business is Culture: The culture of the nation and the companies should have an international vision. The long term perspective of companies should be to move wherever market opportunities are good. Inward-looking culture makes companies remain local.
  2. Another main problem in International Business is Market Competition in Host Country: If the best global companies enter the markets, the competition goes intense, and accordingly, inefficient companies have to close their shops.
  3. Another main problem in International Business is Costs: The competition calls for marketing quality products at competitive prices. If prices are high the market rejects the products.
  4. One of the main problems in International Business is National Controls: The nation-build barriers for outside country manufacturers by increasing trade barriers. Trade barriers will be direct by way of high customs duties. Indirect barriers will be licensing procedures, quota system, inspection, certification, and tedious paperwork.
  5. Another main problem in International Business is Nationalization: Due to Ideological differences, some nations do not trade with nations of their dislike.
  6. Another main problem in International Business is War and Terrorism: The political uncertainties and war-like situation are blockages to the growth of trade.
  7. One of the main problems in International Business is Shortsightedness of Management: Some management ignores vast business opportunities across national borders. The companies do not wish to go beyond national borders. If a company does not adapt to local conditions it does not survive.
  8. One of the main problems in International Business is Organization History: The companies who are contended and like to remain within a nation.
  9. Another main problem in International Business is Domestic Forces: The government or social restrictions imposed on commerce and industry become a hurdle in a company going global.
  10. One of the main problems in International Business is Conflict within companies and within the international organization: Difference of opinion in strategies to be adopted between different management levels in international business. If support is inadequate the international business proposal fails.
Must Read  Types of International Business

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