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Essay / Major Issues Affecting International Managers - 2286
INTRODUCTION: Expanded competition and easing of economic restrictions gave rise to the development of the force of globalization, which then led to the creation of businesses and managers multinationals. In 2000, global trade in exports and imports accounted for 25% of global GDP (Govindrajan & Gupta 2000). The rise of globalization poses a number of imperative tests for companies seeking an international presence, and more particularly for the global leaders of these companies, who must successfully contribute to this presence. Many strategic facets must be measured before and after international engagement. Continued flexibility is essential to adapt to fluctuating trends locally, regionally and internationally. This essay aims to detect the main issues affecting international managers, including political risks, cultural issues, strategic choices and globalization. POLITICAL RISK: Wells (1998) defined political risk as the challenges faced by investors that result from some sort of government action, and sometimes inaction. In this context, political risk involves undesirable business consequences due to the behavior of governments and public sector organizations (Suder 2004). The most essential political risk has been the peril of nationalization (Brooks et al 2004). The dangerous threat of nationalization sometimes takes lighter forms, such as when, in times of crisis, some governments choose to control exchange rates. Another source of political risk is war or civil unrest. However, Jones (2001) notes that dramatic events such as wars and assassinations are rare in the international business world. Additional political risk is characterized by corrupt practices (Hill 2005)....... middle of paper..... .lable at: http://news.bbc.co.uk/hi/business/ 6279679.stm-Suder, G.S. (2004). Terrorism and the international business environment: the link between security and business. Éditions Edward Elgar.- Stiglitz, J. (2002). Globalization and its discontents. London: WW Norton-Takyi – Aseudu, S. (1993). Some sociocultural factors delaying entrepreneurial activity in sub-Saharan Africa. Journal of Business Venture, 8, p. 91 -98.- Vitell, SJ, Savior, L., Nwachuckawu, A. and Barnes, JH (1993). The effects of culture on ethical decision making: an application of Hofstede's typology. Journal of Business Ethics, 12, p.753-760.- Wells, LT (1998). Good and Fair Competition: Do Foreign Direct Investments Face Other Risks in Emerging Markets? Malden, MA: Blackwell.-Yip, G.S. (1998). Global strategy in a world of nations?, Sloan Management Review, fall, p.. 29 -41.