International Strategic Management - Basic Questions

Basic Questions

In foreign countries, there are the possibility of:

  • local languages required in many situations.
  • very diverse cultures, both between countries and sometimes even within countries.
  • often volatile politics.
  • varied economic systems.
  • scarcity of skilled labor, with possible costs in training labor or redesigning procedures.
  • poorly-developed financial markets and government-controlled capital flows, in some of the countries.
  • problems and exorbitant costs in obtaining market research data.
  • limited advertising, subjected to lots of restrictions.
  • possible low literacy rates, not to mention the possibility of making mistakes in the language when advertising.
  • currency exchange fluctuations.
  • inadequate or limited communication/
  • mandatory worker participation in management in some countries.
  • legal restrictions on laying off of workers.

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