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International Business: An Asia Pacific Perspective, Second Edition by Andrew Delios

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2. The International Business Environment

When a firm crosses national borders, the managers in the company are faced with potentially dramatic differences in the environments in which the company operates. Changes can occur along a number of dimensions. Culture, language, and social customs can differ from one country to another. Political systems and rules of law can likewise vary. The economic system, including the currency used for exchange, the banking system, and the degree of central planning can also be quite different. Differences along each of these dimensions can have a substantial influence on the types of practices utilized in a company throughout its operations as well as the strategies adopted by an international company in its ...

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