Developing countries and international management

Pisik (2010) reported a news about doing business in India and Chinese market, where are developing countries. As the title indicated, doing international business with developing country is “Not easy”, but it is “Worth it”.

At the very beginning, Pisik depicts a few informal barriers, such as different habit of time in India, training issue in Africa, and language issue in mainland China. These could be all cultural issues, which will be inevitable when doing international business in foreign countries. Furthermore, Pisik provides more specific examples of how people act in different countries, and how people struggle to adapt these, where some examples are from her, and some are from others.

When businessmen face these differences, it brings more challenges for international management. The more important opinion from Pisik is that those international companies need their own people on the ground, as many issues could not be effectively or efficiently dealt with via email, phone, or Skype. Guedes & Faria (2007) have similar opinion that international management has been impacted by national interest. Their study also provide clear in-deep perspective that international management involve many factors, not only managers, but also diverse kinds of other parties, such as local government, policy maker, local consumers, local communities, and many others. It is not doubt that when communicating with government, they will not accept Skype and email might be slow. For an international company, it has to send one or more managers to be on the ground, to guarantee the sound communication with all parties. If these managers could work effectively with local people, it will make the whole business process on right track and save significant time and money.

Guedes, A., & Faria, A. (2007). Globalization and International Management: In Search of an Interdisciplinary Approach. Brazilian Administration Review.

Pisik, B. (2010). It’s Not Easy, but It’s Worth It. Retrieved from: http://upstart.bizjournals.com/news/wire/2010/04/13/challenges-to-doing-business-abroad-abound.html?page=all.

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2 thoughts on “Developing countries and international management”

  1. Economic globalization has shown strong vitality of the world economy, politics, military, social, cultural, and even ways of thinking, have had a huge impact. Neither against any country, and it can not be avoided, the only way is to adapt it to actively participate in economic globalization, be examined in the historical tide. For developing countries, economic globalization is both a serious challenge, but also great opportunities.
    In the past, scholars habitually eyes focused on developed economies to the internationalization process of enterprises in developing economies, expanding outward, even across enterprises in developing countries, only a handful of large state-owned enterprises on international mergers and acquisitions. As for the economy as a whole accounted for the vast majority of developing countries’ share of small and medium enterprises, for their international orientation of strategy and entrepreneurship, the developed countries should focus on international march.

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  2. Both India and China are emerging markets of Asia with unique cultures and a large population. However, India is mo attractive to multinationals, and especially to American and British firms because English is wider used in India than China. But Indian society has more problem, in terms of gender equality and human right.

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