Domestic and global business environment contains all the factors inside the nation of operation and externally covering those of marketing, finance, production, and management. A model organization has two substantial activities which are production or acquisition of goods and services as well as the making sales for profit. During this whole process, a company has to tackle some social and labor issues in its domestic and global fronts and endeavor to outdo competitors (Picciotto & Mayne, 2016). This paper will discuss the nature of social and labor issues that domestic manufacturers are susceptible to regarding international suppliers. It will also reflect on the significance of cultural background of a foreign supplier.
Social issues include religious injunctions, demands by local manufacturers or foreign suppliers on kinds of products, cultural customs for the final products, and among others. Religious injunctions in some countries do not consider some products legitimate to them and may never be authorized to be sold (Picciotto & Mayne, 2016). The domestic manufacturers or foreign suppliers may have a preference for certain types of goods, for example, non-GMO, or range-free products. Regarding cultural norms, companies must be careful to preserve cultural sensitivity of each company.
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Labor issues include labor regulations, minimum wage laws, and among others. There are regulations on employees that pertain to other foreign suppliers that are not friendly with that of the domestic manufacturers (Picciotto & Mayne, 2016). Also, the economy of various nations differs, which implies that minimum wage laws vary as a result. A wage rate for the international supplier might be too high for the domestic manufacturer to match up.
In conclusion, there are various social and labor issues that domestic manufacturers will likely face with the international suppliers. Recognizing the cultural context of a foreign supplier is essential. It will help a company build trust and advance a bond with the supplier. The challenges of the language barrier, labor, and cultural issues that pertain to the foreign supplier can be understood and overcome. It becomes easier to come up with workable strategies that will help offset such challenges.
Reference
Picciotto, S., & Mayne, R. (Eds.). (2016). regulating international business: beyond liberalization . Springer.
