Course Hero Logo

Language and religious diversities are the real

Course Hero uses AI to attempt to automatically extract content from documents to surface to you and others so you can study better, e.g., in search results, to enrich docs, and more. This preview shows page 7 - 9 out of 13 pages.

Language and religious diversities are the real challenge for international business players. Thereare 6000 languages in the world. China (20%) is the largest in term of native speakers, followedby English (6%), and followed by Hindi (5%). Yet English is recognized as global businesslanguage.English speaking countries can contribute the largest share (40%) in global business. Religiousdiversities seem difficult to cope with as they determine needs and wants of people. At presentChristianity is the largest in the world (1.7 billion), followed by Islam (1.0 billion), followed byHinduism (750 millions), and followed by Buddhism (350 millions).4. Political Instability or Environment:Different political systems (democracy or dictatorship), different economics systems (marketeconomy, command economy, and mixed economy), and political instability are some of real
8challenges that international markers have to face. Political atmosphere in different courtiersoffer opportunities or pose challenges to international marketers.Governments in different nations have their priorities, philosophies, and approaches to theinternational trades. They may adopt restrictive (protectionist) or liberal approach to internationalbusiness operations. Especially, political approaches of dominant nations have more influence ininternational marketing activities.Long-term trend of global political environment is unpredictable and uncertain. Economicpolicies of different nations (industrial policies, fiscal policies, agricultural policies, export-import policies, etc.,) do have direct impact on international trade. Drastic change in thesepolicies creates endless difficulties to international traders. While dealing with internationalmarkets, international political and legal environment needs a special attention.5. Place Constraints (Diverse Geography):Trade in foreign countries of far distance itself practically difficult. In case of perishableproducts, it is a real challenge. Exporting and importing products via sea route and makingarrangements for effective selling involves more time as well risks. Segmenting and selectinginternational markets require the marketers to be more careful.6. Variations in Exchange Rates:Every nation has its currency that is to be exchanged with currencies of other nations. Currenciesare traded every day and rates are subject to change. Indian Rupee, European Dollar, US Dollar,Japanese Yen, etc., are appreciated or discounted at national and international markets againstother currencies. In case of extraordinary and unexpected moves (ups and downs) incurrency/exchange rates between two courtiers create serious settlement problems.7. Norms and Ethics Challenges:Ethics refers to moral principles, standards, and norms of conduct governing individual andfirm’s behaviour. They are deeply reflected in formal laws and regulations. In different parts ofthe world, different codes of conduct are specified that every international business player has toobserve. However, globalization process has emphasized some common ethics worldwide.

Upload your study docs or become a

Course Hero member to access this document

Upload your study docs or become a

Course Hero member to access this document

End of preview. Want to read all 13 pages?

Upload your study docs or become a

Course Hero member to access this document

Term
Fall
Professor
N/A

Newly uploaded documents

Show More

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture