International Business

December 2021 Examination

Question 1. “In International Business an organization should be able to cope up with the
international differences that arises from different culture and for that the international
culture has to be understood by the managers”.

In light of above statement explain various factors an organization need to understand

about cultural difference while making strategies for international business. Also explain
interaction between national culture and organizational culture. (10 Marks)

Ans 1.
Introduction
I believe that culture often refers to the effects of cultural structures, such as severe, own family,
instructional, and social structures, on individuals, how they remember their lives, and the
decisions they make. Progress can only be made within subcultures that have been forged by
using their subcultures as the rules. There are companies that would like to publicize things in
specific countries, however they must be sensitive to certain elements of the social structure of
each area where they want to conduct business. For sure, even social differentiation between
distinct international locations or particular areas in a comparable country appears, through all
debts, to be pretty much nothing, sponsors who overlook them play with dissatisfaction in
completing their sports. Culture is baffling, and preferring its impact takes big time, attempt, and
capacity. Numerous elements of a tradition can make a trickiness of equivalence. The sponsor, on
the other hand, wants to find tunnels in a similar fashion so they can recognize how the operators
work and the conditions affecting them. In any case, there is no guarantee that even the presence
of a common language will guarantee equivalent interpretations.
Concept and analysis

Each aspect of the outside sales of world companies has an impact on the social structure and
way of living in the country. Despite the way that culture and tradition aren’t at once associated
with business assignments, they indirectly appear as vital components in shaping how the
business is controlled, from what objects are conveyed and the way and through what indicates
they may be offered, to the status quo of classic and sensible fashions and the confirmation of the
accomplishment or disillusionment of latest helpers. Numerous socio-social elements impact
money-associated activity, much like the advent of usual groups. The key socio-social factors
that fundamentally affect the movement of world agencies are 1. Culture; 2. Language; 3.
Religion; 4. Training; 5. Customer biases; 6. The demeanor of the general populace towards new
work and items. Socio-social components are outside the ability to govern the heads of a brand
new assistant. The worldwide corporation must therefore anticipate and evaluate the impact of
socio-social factors in addition to the potential of its supervisors to direct and influence the
assistant's performance, in order to assess the accurate interpretation of its new staff member's
performance.

As long as the closing is remembered for the specificity of the USA through which businesses
operate, it makes it easier to identify the relationship among the countrywide and organization
cultures. It can be said that what is enduring and critical in national cultures will be absorbed by
the stable organizational culture as an individual who will modify the way of life. There are
various lifestyles associated with each and every single business. This is mainly a summary of
the federal way of life of the general public in which it was framed. Besides, national culture
directs the upsides of the organizational tradition of organizations/organizations running inside
its specific situation. In this way, it has a beneficial force on the corporate form of life and
organizational conduct. Moreover, particular creators have contended that the national
convention of life affects the reasoning of supervisors of assorted nationalities and cultures,
which is overwhelmingly apparent when those directors cooperate. The majority of cultures do
not take advantage of the excellent opportunity for articulation, although the majority of cultures
very well consider that such a right should serve the majority's interests as a whole by being
optional.

Furthermore, the national tradition had made a tremendous contribution to the recognition that
there are a number of connections that exist between organizational conduct and social issues. By
means of a selection of measurements, individuals might be able to uncover differentials of
nation-states and corporations' subcultures. The ways in which we live our lives, and how we act
and react on occasions at some point in our daily life cycle, are described by our way of life. It
likewise elucidates how individuals each sometimes deal with others or speak about others.
Sooner or later, subculture in these conditions is perceived utilizing a particular arrangement of
individuals thru its mind, features, and customs. Those thoughts, traits, yearnings, and businesses
were shaped over time by legitimizing them to mark it as ‘organizational tradition.’ For a fact,
organizations have understood that authorizing organizational subculture of their duties can
decide how an organization can make the most of its presentation. It has likewise been set up that
every association has a specific tradition that may be affected by the national culture of any
preferred public where it works. Additionally, countrywide culture controls the advantages
connected to organizational culture along with the organizational behavior used by corporations
operating within the country. As a consequence, it has a direct impact on both corporate tradition
and management behavior.

Conclusion

A culturally-informed administrator can be more aware of representative social contrasts and

simultaneously work on their administrative abilities as a long-term goal, both of which can be
achieved through understanding culture. As a commercial enterprise's daily operations are
sometimes compromised by social distinctions, this may sometimes have an influence on some
practices. Therefore, chiefs want to supervise ‘social range’ sufficiently to get the quality results
required. In this way, any distinctions in life can affect people simply because of the assortments
of representatives in any corporate business enterprise. Henceforth, organizational lifestyle has
an expressive impact on groups at different levels. Moreover, it’s been stated as one of the
prevailing issues while thinking about corporate execution. Therefore, businesses must have
diverse exertions pressure (given globalization) that can exude from numerous social and ethnic
foundations that can function together to accomplish the organizations’ company targets. Finally,
companies/corporations to be treated as individuals should treat all the consumers, of whatever
social background they come from, with the same respect.

Question 2. “Titan Watches” is known for transforming the watch industry in India.
Company wants to evaluate Bangladesh as a potential market for business expansion. Titan
wants to conduct a market research to identify this opportunity.

What is the scope and process involved in conducting International Market Research? (10
Marks)

Ans 2.
Introduction

It is evident that the international market is evolving very rapidly, and this influx of modification
prompts a relationship with favorable and not so favorable circumstances. While these moves
take into account fast growth, global activity change, the advances in worldwide capital, as well
as the needs of customers, they do not neglect fast progress. In this series of changes in
frameworks and regulations, as well as processes, multiple industries are impacted to the extent
that they can expand or trade internationally. This suggests the global promotion is focusing
business to certify to any other international solicitation. Worldwide marketing research and
neighborhood public selling studies have many common elements: portraying the problems,
studies method and design, fieldwork, studies file, cease, and thoughts. In the recent century, a
majority of the findings would appear to be across the two types of investigations made by
political, traditionalist, social, creative and environmental researchers in different countries.

Concept and analysis

In order to achieve a complete understanding of the purchaser's lead, international market
research expects a considerable contribution. The rule of thumb of international advertising
studies is to search out buyer’s solicitations and client leads so that the advertiser may reach out
to them. In the short term, they adapt the know-how of their practices into the specific business
strategies within their respective business areas. In order to make a successful business strategy,
a global review is one of the most important criteria of deciding how to change the overall
business network. It makes sure that new issues are set up, issue definitions are avoided, and the
social differentiation is compelled to mastermind appropriate development messages, to
mastermind a questionable procedure of geographic variations, to summarize the language, as
well as to comprehend complex situations. This picture shows the three most important elements
in a records. The following are the regions that are in this category.

Customer Behavior Is Decided - With the help of statistical research, organizations can better
understand their customers' behavior. It plays studies and gets data like age, sexual orientation
will pay, likes, disdains, and identity with clients. These records gave to corporations help them
in fostering the proper item to fulfill their desires. Marketing research enables businesses to
recognize the requirements and needs of customers and, consequently, figures their creative
strategies.

Giving Valueable Data to a Business -- Delivering value-bearing data to a business enterprise -

the motivational power of any business enterprise is wholly dependent on the type of statistics
surrounding it at all times. Marketing studies substances essential facts about the marketplace to
the supervisory crew. It maintains agencies aware of marketplace factors like interest, delivery,
contest, innovative modifications, consumer behavior, etc. This record is essential for vital
dynamics. All the arrangements that an agency makes are defined by its chiefs as per the
information that is provided from the marketing studies.

Providing revenue forecasting assistance to physical businesses - By reviewing sales activity

trends and by using a variety of methods, market research assists physical businesses with sales.
Creating and keeping an excellent stock diploma within the agencies is a complicated project
before each item manager. Delivering merchandise as in keeping with requests helps in
decreasing danger and elevating benefits. Over-developing and beneath-handing over of products
unfavorably influence the business. Marketing studies conjectures deals utilizing deal electricity
gauge method, deal strength technique, jury strategy, and so forth and elements information to
the enterprise. The use of this method can be beneficial in the process of drafting introductions as
well.

In addition to reducing the risks associated with the businesses - Marketing research takes on
an increasing amount of significance when it comes to decreasing the risks for business
companies as well as raising their profits. It assists groups in sporting their sports as per
marketplace necessities. The business obtains every current datum and sums up data
approximately marketplace styles. In order to create the appropriate item, all inputs have been
taken into account in regard to the client's present needs, and, in this way, the right item will
work to avoid damaging companies' assets and to bring down risks.

The quality and performance of the market itself - It is the execution of the market that plays
the leading role in creating a decent image of the enterprise to a prospective client. Advertising
and marketing research enables the business to assess its exhibition, looking out and make a pass
in like manner to broaden it further. It takes an observation of the impacts of an item, value,
emblem call, bundling, and so forth on deals extent. Marketing research contemplates the
customer’s reaction towards enterprise gadgets on the lookout and offers all statistics. A good
value measurement method, a distribution channel, and a marketing strategy are developed,
enabling further development of the market performance by providing an assessment of their
usefulness.

Works in conjunction with the introduction of new products - Marketing studies provide
businesses with a way to perform research on new products and present them with new gifts to
consumer. It empowers the direct trying out of unused devices in little or closes by business
sectors and studies patron response closer to it. This aids the commercial enterprise in
understanding the insufficiencies and troubles of their object. They can accurately beat these
troubles and fosters an effective marketing combination for their item. As the contents of these
bits have been prepared, it helps in limiting the danger implied by some other object inserted
before it.

The best promotional methods should be chosen - In order to expand the offerings of a
commercial enterprise, the use of valid confined time methods is absolutely essential. A
campaign research is available to help advertising agencies identify and choose the most suitable,
limited-time, and marketing programs for their gadgets. In this way, the business is able to gain
information about the characteristics and preferences of its customers.

Conclusion

Similarly, each of the time limited processes is carefully planned and implemented, which are in
line with the client's key wishes as each individual item includes an item description. A
marketing study is a method for building an offering of a company by selecting unique variables
that are appropriate for that business. I need to make sure that you understand something about
the impact that it has on clients and the ability to draw in an additional amount of them by all
means necessary.

Question 3. Nike Inc., the world’s leading apparel and footwear manufacturer,
outsources the manufacturing part of the production to a number of factories in Asia
where there is plenty of cheap labor available.

Usually, it chooses countries where cheap labor is available, where there is an authoritarian
government, and the lack of union rights appeals and union movements.

Since the 1970s, Nike, Inc. has been accused of using sweatshops to produce footwear and
apparel. It was built on the business model of finding the lowest cost of labour possible
which led to child labour and exploitation
As to remain competitive in the market, Nike searched for cheaper resources and markets.
Therefore, Nike had shifted its production to lower manufacturing cost countries such as
Japan, Korea and Taiwan. Later in the 1980s, production had moved to Southern China.
However, as Japan’s economic started expanding, the manufacturing cost increased.
Therefore, Nike shifted its contracts to Vietnam, Indonesia and China

Nike has the highest number of contract factories in China followed by Thailand, South
Korea, Vietnam, Pakistan, Bangladesh, and India. By opting for such places, Nike has
made huge margins due to cheap labor...

Starting from the mid 1990s, there were criticisms from human right protectors and media
regarding labour health and safety conditions, low wages and discrimination in the hiring
and firing process. Therefore, Nike started to take actions as to rescue its reputation.

a. Briefly describe the ethical issues involved in sweatshop conditions and the treatment of
workers in Nike's factories. (5 Marks)

b. Nike has failed to follow the labor laws of the countries it operates in and has not
succeeded in effectively implementing its Code of Conduct. What measures must Nike take
to convince the public that it really wants to put an end to the maltreatment and
exploitation of workers in its Asian factories? (5 Marks)

Ans 3.
Introduction
It is now a widely accepted fact that ethical conduct has dynamically become one of the single
most offensive topics within the modern business society. Globalization is generating more and
more multinational companies (MNCs) using new methods of integrating morals into the
workplace and further empowering them to manage moral issues in the many areas where they
are involved. At present, Nikes is the setting for many organizations to gain a significant
advantage via the ‘easy course of action.' Each organization is looking for unusual methods to
gain an advantage over their competitors.

Concept and analysis

Ans 3A.

Having a strong ethical framework is one of the most important components of any association
or step process and it must be applied to all aspects of the entity. Fundamentally, Nike thinks
approximately delegate traits, tips, and great attributes when making the decision. Because of the
fundamental ethical problem consequences around delegate work condition and their remedy, it
is massive that Nike keeps giving revolutionary resources for those working overseas. There are
exquisite possibilities for extra work/business practices, yet calls for an actual trade-in
exceptional locale that Nike cannot entire. Finishing this will moreover foster client
belief/commitment anyway could help the association gainfully. It is by design that execution
and best are stayed privy to while considering the security and soundness of the environment.

Additionally, in light of the fact that Nike has amended its definitive plan more than one time in
the past few months, it might be considered credible that further evaluations of the community
are needed to create a steady strategy. With the extra part of the problem coming from suppliers
overseas, Nike needs to promise it works with its dealer to ensure sturdy surroundings for all.
Nike must, in addition, take into account providing on the point of all to deal with managerial
limits. Notwithstanding how this will give Nike’s workers a few benefits and help, it’ll help
diminish ethical issues and foster preparing plant importance.

Ans 3B.

Introduction
Due to pressure from savants who have endeavored to translate its famous shoe logo into a
phrase that implies misleading, Nike Inc. has committed the sin of showing immature employees
and requiring overseas manufacturers of its products to follow extreme United States prosperity
and safety standards. Philip H. Knight, Nike’s government and CEO, furthermore assented to a
top rate that the companies have since pretty some time beyond went in opposition to, vowing to
permit pariahs from work and essential opportunities social affairs to sign up for the structured
analysts who explore the plant life in Asia, speaking with labors and searching over running
instances.

Concept and analysis

Compared to other clothing items, footwear consumes heavier devices and employs better and
more advanced dangerous stiff cloth or solvents that are hazardous to the air quality. Companies
announced that they would reestablish air-first-class controls in factories in which Nike shoes are
made abroad to make certain that the air breathed in by way of employees meets comparable
requirements kept by way of the United States Occupational Safety and Health Administration. It
wasn’t such a variety of that a long term in the past that Nike was being shared transparently for
its work practices to in which it critically ruined the groups’ appearance and harm arrangements.
The new creation line breakdown in Bangladesh became an update that despite how Nike sorted
out some manner to turn its picture, huge bits of the business haven’t changed the use of any
approach. Nike became an early evenhanded for the very clarification it has been such success.
Its system relied upon reexamining its collecting, using the money it got a good deal on practical
advancing endeavors. Nike has sorted out a few ways to turn its photo around. Nike has now not
been efficient in adjusting fabricating vegetation. Yet, there may be no denying that the company
has finished one of the maximum incredible picture turnarounds in the past several years.

Conclusion

It would be vital for Nike to remain the plain global company through practical efforts, which
would foreclose unfavorable results for extra positive results. Nike done a lot of things that may
wind up being massive over a long period of time according to the issues raised above. The
problem relies on Nike's inclination to neglect its organic impacts, which results in prone
checking pictures. In this way, Nike needs to essentially on a possible critical agency plan that
carries both social and organic views. Notwithstanding those effective adjustments, Nike still
cannot appear to focus on killing dangerous synthetics ultimately from its keep network, which
has now been considered sizeable difficulty morally for the specialists uncovered on routine to
them and people wearing the object made by Nike. During the 1990s, Nike turned into a business
enterprise, dropping blessings and purchasers due to their unethical commercial enterprise hints.
However, Nike has now begun to show the global market how moral behavior is gainful.
Although Nike flourishes in the global market, it will always be associated with its unethical
actions.