ASSIGNMENT

Subject: International Business

Submitted to submitted by
Prof.Mofikul islam Mohammed Riswan P S
MBAW-19
1) Discuss about the HRM (hiring the labor, Compensation strategy &
qualification of the managers) in international prospect to perform the
business activities during this competitive & pandemic situation for
long run benefit of a business organization (Service or physical goods).
Please write the answer giving the suitable example of a MNC that are
working since long time.

International human resource management (IHRM) is the process of procuring, allocating,

and effectively utilizing human resources in a multinational corporation. If the MNC is simply
exporting its products, with only a few small offices in foreign locations, then the task of the
international HR manager is relatively simple.However, in global firms human resource
managers must achieve two somewhat conflicting strategic objectives. First, they must
integrate human resource policies and practices across a number of subsidiaries in different
countries so that overall corporate objectives can be achieved. We show the relevance of
extant international business (IB) research, and more specifically work on international
human resources management (IHRM), to address COVID-19 pandemic challenges. Decision-
makers in multinational enterprises have undertaken various types of actions to alleviate the
impacts of the pandemic. In most cases these actions relate in some way to managing
distance and to rethinking boundaries, whether at the macro- or firm-levels. Managing
distance and rethinking boundaries have been the primary focus of much IB research since
the IB field was established as a legitimate area of academic inquiry. The pandemic has led
to increased cross-border distance problems (e.g., as the result of travel bans and reduced
international mobility), and often also to new intra-firm distancing challenges imposed upon
previously co-located employees. Prior IHRM research has highlighted the difficulties
presented by distance, in terms of employee selection, training, support, health and safety,
as well as leadership and virtual collaboration. The steps involved in the selection process
must be examined to see their relevancy and applicability to the subsidiaries. For instance,
the content and the information secured through application forms must be relevant and
applicable to the local situation. Care must be exercised in importing such forms from parent
company and using them in the subsidiary without incorporating the local content.
It may be easier to use imported application forms, but they may secure the right kind of
information or the items in such forms may be understood by the applicant. Local laws must
be taken into consideration rather than asking questions pertaining to laws and regulations
in the country of parent organization.
During this pandemic, leaders in MNEs have needed to make swift decisions with far-
reaching consequences, communicate effectively to diverse stakeholders, manage resources
judiciously, integrate organizational and local demands, and inspire expectations of
reliability via authenticity. The competencies needed for leadership during the COVID-19
pandemic in general are mirroring the competencies of effective leaders in MNEs because
the uncertainty, ambiguity, and importance of context are present in both leadership
situations. Those MNE leaders who succeed in situations of novelty typically command three
cultural-agility related responses that they can leverage like tools in a toolbox (Caligiuri,
2012; Caligiuri & Tarique, 2016). First, they have the skills to adapt to the demands of the
context when needed, relying on those familiar with the local context to influence key
decisions. Second, they know how to integrate diverse perspectives and demands; even
 when the demands are conflicting, they can work to find an integrated solution. Third, they
know when to provide direction, even if it is not welcome or popular.

2. Describe the role of higher level management in establishing new business

to a new country for the service providing or brain drain process (financial
transaction, penetration into market and channelize the substitute agency).
Also discuss about the controlling decision of business strategy.

International business basically refers to commercial transactions that involve more than one
country. Globalization has made it possible for business organizations and nations to carry out such
transactions.

Business managers have to perform several important roles to earn profits and minimize losses.
Since cross-border transactions require large-scale operations, management becomes very difficult.
Due to this reason, international management has gained immense significance over the years.

Browse more Topics under Recent Trends In Management

• Total Quality Management

• Risk Management

• Crisis Management

• Resistance to Change

• Change Through Management Hierarchy

• Concept of Change Management

• Global Practices/International Business

CEOs and top management teams of large corporations, particularly in North America, Europe,
and Japan, acknowledge that globalization is the most critical challenge they face today. They
are also keenly aware that it has become tougher during the past decade to identify
internationalization strategies and to choose which countries to do business with. Still, most
companies have stuck to the strategies they’ve traditionally deployed, which emphasize
standardized approaches to new markets while sometimes experimenting with a few local
twists. As a result, many multinational corporations are struggling to develop successful
strategies in emerging markets. Part of the problem, we believe, is that the absence of
specialized intermediaries, regulatory systems, and contract-enforcing mechanisms in emerging
markets—“institutional voids,” we christened them in a 1997 HBR article—hampers the
implementation of globalization strategies. Companies in developed countries usually take for
granted the critical role that “soft” infrastructure plays in the execution of their business models
in their home markets. But that infrastructure is often underdeveloped or absent in emerging
markets. There’s no dearth of examples. Companies can’t find skilled market research firms to
inform them reliably about customer preferences so they can tailor products to specific needs
and increase people’s willingness to pay. Few end-to-end logistics providers, which allow
 manufacturers to reduce costs, are available to transport raw materials and finished products.
Before recruiting employees, corporations have to screen large numbers of candidates
themselves because there aren’t many search firms that can do the job for them

Strategic decision making is about choosing the best path to success. For instance, if you’re
starting a new business, you need to consider factors like cost, time and the target market. How
do you classify decisions to reach the ideal solution? Strategic decision making will help you
formulate a plan of action and align your small-term goals with the big picture.

From a management perspective, strategic decision-making is different from the routine choices
you make every day. As a manager, for instance, you have to delegate roles, communicate goals
to your teammates or external stakeholders and account for uncertainties. The decisions you
make not only affect you but the organization as a whole. It’s a good practice to cultivate
objective decision-making abilities, free from bias and prejudice.

Characteristics/Features of Strategic Decisions

• Strategic decisions have major resource propositions for an organization. These decisions may
be concerned with possessing new resources, organizing others or reallocating others.

• Strategic decisions deal with harmonizing organizational resource capabilities with the threats
and opportunities.

• Strategic decisions deal with the range of organizational activities. It is all about what they
want the organization to be like and to be about.

• Strategic decisions involve a change of major kind since an organization operates in

ever changing environment.

• Strategic decisions are complex in nature.

• Strategic decisions are at the top most level, are uncertain as they deal with the future, and
involve a lot of risk.

3. Write short note about SEZ (special economic zone) and choice of
industry.
special economic zone (SEZ) is an area in a country that is subject to different economic
regulations than other regions within the same country. The SEZ economic regulations tend to be
conducive to—and attract—foreign direct investment (FDI). FDI refers to any investment made by a
firm or individual in one country into business interests located in another country.

The following are the main characteristics of Special Economic Zones (SEZ):

• Geographically demarked area with physical security.

• Administrated by single body/authority.

• Enjoying financial and procedural benefits

• Streamlined procedures

• Having separate custom area

 • Governed by more liberal economic laws.

Role of SEZs in International Business

One of the main objective of SEZ is to enhance exports, i.e. to have a prominent role in international
business. A main factor in determining the success of SEZ is growth in the exports made by them.
The purpose behind their establishment is to provide an internationally competitive environment to
increase export, by making available goods and services free of tax and duties supported by
convergent infrastructure.

In order to stimulate the exports, normally, related enactments were provisioned with the following:

• Long-term and stable policy framework with minimum regulatory regime.

• Expeditious and single window approval mechanism.
• Import and export movements of goods are based on self-declaration.
• No routine examination is made unless specific order from concerned authority.
• Packages of incentives to attract foreign and domestic investments for promoting
exports-led-growth.
• Exemption from custom duty on goods imported into the SEZ by the developers to carry
out their authorized operations.
• Exemption from customs duty on goods exported from the SEZ by the developer or SEZ
units.
• Free Trade and Warehousing Zones, to create trade related infrastructure to facilitate
import and export of goods and services and to create world-class infrastructure for
warehousing with all amenities.
• Freedom to carry out trade transaction in free currency.
• “Deemed Export” Facilities in the SEZ.

choice of industry Entrepreneurial entry happens as a consequence of a general choice of an

individual to become an entrepreneur. While most entrepreneurial entry studies rarely
consider an industry choice to be an aspect of entrepreneurial decision making process, we
address this issue taking into account individual, industrial, and country specific attributes.
Using data from the Global University Entrepreneurial Spirit Students’ Survey (2013–2014)
on young nascent entrepreneurs and extending it with objective indicators derived from
World Bank, Global Entrepreneurship Monitor, and International Property Rights Index
datasets, we investigate how various factors impact the choice between
knowledge intensive and capital-intensive industries. Drawing on the RBV and contingency
approach, we link an industry choice to the level of human capital development and access
to financial capital testing for possible country-specific moderation effects. Our study
contributes to entrepreneurial entry research stream extending the understanding of
entrepreneurial entry decision making nuances related to individual access to resources and
both industry and country-level contingencie