KAZI RUMANA AKTHER

Barriers to International Business

MBA PROGRAMME IN SUSTAINABLE BUSINESS

MANAGEMENT
2023
CONTENTS

1.INTRODUCTION.....................................................................................................3
2.BARRIERS TO INTERNATIONAL BUSINESS....................................................3
3.CULTURAL AND LANGUAGE DIFFERENCEOTHER SETTINGS..................3
4.LEAGAL AND REGULATORY CHALLENGES..................................................4
5.CONCLUSION……………………………………………………………………..4
6.REFFERENCES……………………………………………………………………5
1.INTRODUCTION

Expanding a business globally offers numerous opportunities for growth and profit.
However, it also presents various challenges and barriers that must be navigated
successfully. This report explores the key barriers to doing business globally,
focusing on cultural and language differences, as well as legal and regulatory
challenges.

2.BARRIERS TO INTERNATIONAL BUSINESS

Entering international markets involves complexities that can be significant barriers

for businesses. These barriers can be broadly categorized into cultural, legal, and
economic factors (Hill, 2021).

3.CULTURAL AND LANGUAGE DIFFERENCES

Cultural differences are among the most significant barriers to global business
success. Every culture has its own set of norms, values, and communication styles.
Misunderstandings can easily arise when business interactions occur across cultures.
For instance, Hofstede's cultural dimensions theory highlights differences in power
distance, individualism, masculinity, uncertainty avoidance, and long-term
orientation, all of which can affect business relationships (Hofstede, 1980).

Language barriers compound cultural differences. Effective communication is

essential for successful international business negotiations and collaborations. A
failure to bridge language gaps can lead to misunderstandings, disputes, and lost
opportunities (Kim et al., 2018).The order in the body of the text can vary. Discuss
your solution with your supervisor.

4.LEGAL AND REGULATORY CHALLENGES

Legal and regulatory challenges vary from one country to another and can pose
significant hurdles for global businesses. Differences in labor laws, tax regulations,
intellectual property protection, and trade policies can affect a company's ability to
operate successfully in foreign markets.

Furthermore, navigating these challenges often requires extensive legal expertise and
resources. Small and medium-sized enterprises (SMEs) are particularly vulnerable to
these barriers, as they may lack the financial resources and legal support that larger
corporations can afford (Morrison, 2017).

5.CONCLUSION

Expanding a business globally presents numerous opportunities, but it also comes

with significant barriers, including cultural and language differences and legal and
regulatory challenges. Successful international business operations require a deep
understanding of these barriers and effective strategies for overcoming them.
REFERENCES

Hill, C. W. L. (2021). International Business: Competing in the Global Marketplace

(13th ed.). McGraw-Hill Education.

Hofstede, G. (1980). Culture's Consequences: International Differences in Work-

Related Values. Sage Publications.

Kim, Y. Y., Ok, C. M., & Petty, R. D. (2018). Overcoming Language and Cultural
Barriers in Business: A Contemporary Perspective. International Journal of Business
Communication, 55(1), 67-83.

Morrison, T. (2017). SMEs and International Business: Overcoming Barriers to

Internationalization. Journal of Small Business Strategy, 27(1), 41-54.