International Management and International Business
How finance, marketing, management, and human resource is related to international business
Globalization has brought new practices and opportunities to the business sector. However, to enjoy the remunerations related to globalization and international business, an organization has to introduce effective practices in human resource, finance, marketing, and management sectors. Human resources, management, finance, and marketing plays a crucial role in assisting mangers to understand the real world issues and equip them with necessary skills to operate across national borders as business professionals. These aspects assists business professionals to develop strong industrial links to ensure that they worldwide expertise that assists in linking to other global businesses (Castillo & Hinck, 2004). These concepts at international forum will assist organizations to develop skills such as the ability to think creatively and analytically, develop persuasive communication, interpret and use management information, and develop skills to manage people and projects internationally.
Mind map on how finance, marketing and management connects to each other via international business
Human resource
Marketing
Management
Finance
International Business
Finance, marketing, management, and human resource have a close interrelation that converges at the international level. The finance structure of a business plays a crucial role while planning on marketing and human resource management of an organization. Management in an organization entails managing finances, marketing, and human resource of an organization (Mahmoud, 2014). At the international level, a manager is required to manage all the four aspects concurrently to ensure that the business runs effectively.
Explain how finance effects international management decision making when the aim is to expand international business
International Business comprises all commercial transactions (private and government, sales, investments, logistics and transportation) carried out between two or more regions, cities, and nations within the political boundaries. Usually private companies undertake such profitable transactions while the government undertakes them for profit or for policy. This refers to all businesses with activities involving cross-border transactions for goods, services between two or more nations. Transactions for economic resources include finances, marketing, and human resource (Castillo & Hinck, 2004).
The conduct of international operations depends on the objectives of the companies and the means by which they are carried out. Operations affect and are affected by physical, social factors and the competitive environment. Moreover, strategic variables affect the choice of mode of entry for multinational expansion beyond its domestic markets. These variables are the global concentration, global synergies, and global strategic motivations of multinational corporations.
Finance has a critical role in the international management decision making. When aiming at expanding international business, there are economic cycles when economic activity accelerates or slows down. More specifically, an economic cycle is an oscillation of production, income, and employment throughout the country that are necessitated by financial backdrops. They usually last between 2 and 10 years and are characterized by a general expansion or contraction of many sectors of the economy (Mahmoud, 2014). They occur in all advanced market economies. Balance situation of stability in a process, which occurs when the opposite forces acting on it are compensated, canceling out. The …
