5 Reasons For The Growth In International Business

Question 1 

The last few years have witnessed a growth in international business. The continuous globalization has meant that companies are now operating in different countries as franchises or partners with other corporations. Business leaders, therefore, have to grapple with the need to leverage technology as the basis of business operations. Business meetings, conferences, and other forms of interaction will occur in the e-business platform. Using the e-business platform comes with a host of implications for the business leader. For instance, while operating in continents such as Africa, Australia, and South America, leaders must begin by appreciating the cultural differences existing among the people. Differences in culture can impact values, perceptions, beliefs, and the general way in which a person conducts business (Barnwell, Nedrick, Rudolph, Sesay, & Wellen, 2014). The manager must also demonstrate their awareness in as far as language is concerned. Language is a medium of communication and, therefore, a fundamental tenet in business. For instance, a South American affiliate might only be speaking Spanish, while an Australian counterpart could only be fluent in Mandarin. As such, this could lead to a significant language barrier that eventually hampers business. Thirdly, the business person must also appreciate the location difference that exists between himself and the rest of the affiliates. The physical difference could have implications on interpersonal communication and the level of trust built among them. 

Question 2 

Global leadership revolves around leading individuals that are located in multiple regions around the world. They engage a wide variety of diverse groups and stakeholders in a bid to achieve particular goals. Effective global leadership must meet the diverse needs of people and ensure that the teams achieve a binding objective. Managers on international assignments often assume different roles to enhance their leadership effectiveness. For instance, these leaders must coordinate their virtual teams and ensure synergy and cooperation among members. Secondly, leaders at this level must mitigate the differences and resolve the conflicts that emerge due to the differences in language, culture, values, beliefs, and perceptions. For example, a country like Argentina in South America has its citizens speaking Spanish while in the United Kingdom, the main language is English. Therefore, a leader must navigate through the barrier created by language and ensure that members from these countries can work together (Kirkman, Shapiro, Lu, & McGurrin, 2016). The business culture in Argentina is based on values such as honor, trust, and familiarity. Since the business is relationship-driven, engaging in meaningful virtual business can be a significant challenge. However, relationship building in the UK cannot be a significant issue on the e-platforms so long as individuals can maintain courtesy and punctuality. 

Question 3 

Both positive and negative outcomes can emerge when an individual is managing multicultural groups. The outcomes arise thanks to the societal, political, and cultural differences exhibited by the members of the team. On the positive note, one can appreciate the experience and skill set that comes with diversity. Working with multicultural groups can assist the manager in appreciating different approaches given to tasks within an organization (Kirkman, Shapiro, Lu, & McGurrin, 2016). Secondly, the manager works with people from a virtual perspective where members interact with the help of technology. As such, this allows the manager to engage with different groups using the least amount of resources possible. However, the manager working with these groups will also experience a plethora of challenges. The cultural difference means that coordinating the team members will present widespread problems. The physical differences exhibited by individuals in these countries means that time difference is also a factor (Kirkman, Shapiro, Lu, & McGurrin, 2016). Therefore, creating a conference that is a convenience for every person becomes a vital challenge. Significant problems can emerge in situations where a country is experiencing serious political challenges such as regime instability and uprisings, among others. Terrorism and security challenges can also hinder a person from conducting international business. Some managers can also face travel issues due to adverse weather conditions or problems to do with a person’s travel documents. 

Question 4 

Motivation remains a significant aspect that human resource management must consider. Research has demonstrated that a highly motivated workforce is better poised to achieve organizational success. Culture can be defined as a set of values, beliefs, and the perception that determine behavior and the general way of life (Barnwell et al., 2014). Culture has a significant impact on the motivation of a person. An employee best receives motivation from what they can identify with. In some cultures, money or material reward is the main driver to excellence. However, some cultures favor status and recognition (Kirkman, Shapiro, Lu, & McGurrin, 2016). Employee trust is another aspect that differs with culture. Two people from different cultures are likely to perceive trust from different angles. For instance, in America, employee trust comes when they receive more responsibilities. In America, a more trusted employee will likely receive more responsibilities that have the most significant impact on the organization. In a third world country like Kenya, an increase in rewards or incentives is likely to increase employee trust. Countries that believe in merit like China are likely to develop trust when their input is valued. Recognizing the work of a Chinese and promoting them based on their performance is a sign of employee trust. As such, this shows that different societies have diverse ways of appreciating motivation and trust within the organization. 

References  

Barnwell, D., Nedrick, S., Rudolph, E., Sesay, M., & Wellen, W. (2014). The leadership of international and virtual project teams. International Journal of Global Business, 7(2). 

Kirkman, B. L., Shapiro, D. L., Lu, S., & McGurrin, D. P. (2016). Culture and teams. Current Opinion in Psychology, 8, 137-142.