Organizing International Business: Overview to Thesis

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Currency downturns and upturns that cannot be controlled by the business can also affect the receptivity of imports, exports, and the costs of doing business abroad. Doing business internationally can 'hedge' risk in the sense that a downturn in one arena can be compensated by an upturn in another area, but during times of general economic downturn, the risks can also be greater, rather than balanced. This can be seen in the wake of the current credit crisis -- because of interconnected global operations, when American real estate 'sneezes' the world's credit market 'caught cold' in the subsequent deep-freeze.

Finally, expanding operations too rapidly without adequate research about local culture and needs can also result in imposing the home country's organization upon a foreign workforce, one of the pitfalls Wal-Mart fell into during its brief tenure in Germany.

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Wal-Mart instructed German clerks to bag customer's groceries, even though Germans were appalled by the idea of strangers touching their groceries. Clerks were forced smile at shoppers, which resulted in male customers complaining that employees were 'coming-on' to them. Worse yet, unions are strongly supported in Wal-Mart, while Wal-Mart discourages unionization (Wal-Mart struggling in Germany, 2005, Business Week). No company, not even the world's largest retailer is immune to the dangers of globalizing one's organization.

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https://www.aceyourpaper.com/essays/organizing-international-business-overview-23233