Challenges Faced By International Businesses Essay

In this modern globalized world, there have been many challenges for International Businesses to seek for opportunity and chance to expand their business to a wider marketplace. There are many ways for international businesses to seek those opportunities, such as through exporting goods and services, starting a joint venture with a company, opening a branch for distributing goods, and giving license to produce goods. From these ways to seek opportunities, there are basically three major motives, such as resource seeking, market seeking, and efficiency seeking, where the business would be able to achieve low cost production. In regards to these motives, doing business internationally involves some challenges that are different from those involved in doing business in home country. There are three most important challenges that international businesses would face and in fact, these challenges have changed over time. In this essay, the three important challenges, such as the political s ystem, transaction costs involved, and the monetary system, would be explained and examined by looking through the early Multinational Enterprises (MNEs), such as the East India Company (EIC) and the Dutch East India Company (VOC), and the modern Multinational Enterprises. The first challenge that an International Business would face is political systems applied in the foreign country. Political systems are vital for International Businesses to understand, as their systems would greatlyShow MoreRelatedGlobal Business Challenges Of New Zealand Essay1112 Words   |  5 PagesGlobal Business Challenges Businesses competing in New Zealand and in the global arena, have to face many challenges in order to be successful. There is a vast range of challenges that businesses have to face which are considered, the major business challenges. 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