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reply to the response in 150 words and provide 1 reference

 question: Most of us have heard or read about differences in other countries and cultures. Many of our classmates may be from other countries and cultures. Discuss some of these differences and how they affect business. 

students reply

By going global an organization has the ability to enhance its competitive advantage by means of access to a larger market, access to lower cost input items to include raw materials and labor and the ability to develop new competencies.  Although at the 10,000 foot level these advantages may be a deciding factor to go forth and conquer abroad, international business brings with it many challenges.  Both language and culture have a major role.  Thus it is important that respect exists for the history and customs of another culture so misinterpretation of one's actions and communications does not occur.  In conducting business abroad the existence of different time zones can be challenging in that frustration occurs if there is a lack of customer service available during the consumer's time zone.  As a result, an organization must be open to supplying 24/7 support to avoid these situations. A major aspect which must be taken into careful consideration is that of exchange rates in that currency fluctuations can significantly impact profit either in a positive or negative way through escalation or deescalation of a firm's selling price.  The unfortunate aspect of exchange rates is that organizations conducting business do not have any direct control on this specific measurement.  Lastly, laws and regulations vary drastically with regards to labor laws, basics of conducting businesses and even venues on where business is conducted.  Overall, it is important an organization diligently research the cultural, administrative and political, geographic and economic aspects of the specific country they wish to conduct business  (CAGE) (Rothaermel, 2017).

Reference:

Duff, V. (2019, January 28). The Pros & Cons of Going Global With a Business. Retrieved from https://smallbusiness.chron.com/pros-cons-going-global-business-40458.html

Rothaermel, Frank. (2017). Strategic Management:  Concepts 3e.  New York, NY:  Mc-Graw-

Hill Education.