International management

International management is the management of business operations in an organisation serving markets and operating in more than one country. It requires knowledge and skills beyond normal business expectations, such as familiarity with local market and competitive conditions, the legal and financial environment, the capability to do multicurrency transactions and managing across borders.

This definition stresses the need for a much more advanced set of skills than managing within national borders. It demands extensive knowledge of local conditions and adaptability.

As with strategic management and management theories, one might visualise international management as running across the more functional areas like marketing, finance and people/organisation.

Objectives

Picking up the point on strategic objectives above, there might be a number of objectives for having an international strategy:

Global markets are vast and some are developing very fast. For example, in the BRICS countries (Brazil, Russia, India, China and South Africa), demand is growing while there is poor demand in the West.

Some products and services have a different appeal as they cross borders. In the Middle East, Africa and Central Europe, for example, executives will pay good money to hear a British academic speak. Some people will still pay very high prices for British cars - that’s Rolls-Royce and Bentley these days (Rover is gone).

There may be economies of scale.

How to begin

The development of any international strategy often begins with something that is very much an ‘emergent strategy’ (see my earlier articles on ‘strategy’ in Accounting and Business). This is when the first moves occur through opportunities presenting themselves; these are then exploited very much as an experiment, with no particularly clear plan in mind. The difficulty comes when this becomes the set pattern - in the words of one client, ‘Yes, I think we do have activities which seem to be in a slightly random set of countries; in truth I think some of our staff just wanted to be in certain countries.’ Another client once told me: ‘It might seem strange that we have a presence in Mongolia but our founder had a big thing about Genghis Khan.’

International management is a critical area for any serious student of management because of globalization, the worldwide phenomenon whereby the countries of the world are becoming more interconnected and where trade barriers among nations are disappearing. Companies of all kinds are no longer limited to producing and selling their goods and services in domestic markets. In fact, companies are encouraged to explore global markets to stay competitive and are thus likely to have business activity anywhere in the world. Globalization is being facilitated by several key factors, and companies that want to succeed in this environment must understand the key factors that are making the business world more globally connected.

The first critical factor is the lowering of trade barriers through trade agreements, government policies through which countries agree to eliminate cross-border barriers to trade and to promote global integration. To understand the importance of trade agreements, it is necessary to note that countries have long used tariffs to protect local industries and companies. Tariffs are taxes that are added to the price of imported international products. Because these tariffs are usually passed along to the consumer in the form of higher prices, imposing tariffs on imported goods gives domestic companies a price advantage and protects them from foreign competition.

Literature internet list

1. https://www.uu.nl/ Режим достyпа:
2. https://www.uu.nl/masters/en/international-management https://www.researchgate.net/ Режим достyпа:

https://www.researchgate.net/publication/323880758_Administrative_process_modeling_an_introduction_in_administrative_services_and_procedures

1. https://en.tueconomia.net/ Режим достyпа:

https://en.tueconomia.net/business/what-is-the-administrative-process/