When products are exported and imported beyond one country’s boundary, it’s an
international business. Business can be done between two countries who maybe next to each
other or overseas. Companies are better off when they trade with other countries. An
international business brings two country’s culture, tradition, respect together and makes the
bond stronger. It helps customers, employees, stakeholders and also government authorities to
take interest when the company is conducting their business with more than one country.
When company gets attention and generates interest among their customers, it is easier to
launch products and increase sales. These are the stepping stones to get the company’s brand
name recognized.
Countries go to war or conflict due to many reasons like lack of food, water, minerals
and natural resources. These conflicts among different countries affect directly or indirectly to
companies that do business with them. During this situation, it is very important for companies
to take careful steps that do not offense any country, culture, tradition, or religion. These
situations are very sensible for companies who are trading with two conflicting countries
because it might bring a positive or negative outcome.
According to a recent United Nations report (Doing Business in a Multicultural World,
2009), it states that in a situation where two countries are in a conflict with each other, it is
better for company not to pick a favor for one country or religion because that might affect
company’s reputation and loyalty of their customers. Instead the UN report mentions that,
“Companies have responsibility to manage the cross cultural diversity challenges.” By doing so
the company benefits for its own and that of society. I also agree with the decision that the UN
report states that when a company takes positive steps to improve the condition between the
countries, in a long run, customers, politicians, and stakeholders would appreciate it and thus
the image of company increases. This indirectly will attract their customers and stakeholders to
spend their money for that company.
Company should not take a favor because that will be offensive for another group of
country. During the war, people, politicians, and government might be tensed and might get
angry at the company when it picks side. This might affect the company adversely by not
getting permission to sell their goods in that country which was not favored. That country’s
customers might get angry and decide to boycott their products. Rules become strict for that
company by not getting permission to buy raw materials at cheaper prices and thus it become
costly for companies to manufacture products.
With the help of internet, media and radio, news about the conflict, effects of this
conflict, and results can be easily spread. When one country boycotts a specific company’s
products because that company is in favor with another country, media can spread this
message instantly through news and now internet plays an important role in letting the whole
world know about the boycott. Thus people’s perspective across the world changes for that
particular company.
One of the examples from the UN report is about the conflict in the Middle East, which
results in Muslim groups in countries around the world, boycotts United States country’s
products. The conflict starts between two countries but spreads like fire in the whole world.
Thus even if the company choose not to pick a side, it cannot remain neutral. Companies have
to make decisions because in warfare, government rules and political issues arise and are strict.
It is disadvantageous for companies who are trading with that country to run their businesses
smoothly. According to the UN reports, “When citizens of the country become angry, political
issues arises, which leads the government to protest against the businesses.” Thus business
takes interest in bringing its stakeholders from each country to bring greater harmony and
understanding between people of two countries.
An international business can play an important role in helping to bring peace between
two conflicting countries by providing job opportunities to improve the economy of that
country, creating job for all gender, religion, country, and culture, which helps to reduce any
inequalities among them and helps to stabilize the environment positively. Business can play an
important role in attracting people to learn about cultural differences, traditions, languages and
even help to forgive and forget any disputes. As more people are educated to learn and
understand different culture and religion, more positive atmosphere is created even at the
workplace. Employees play an important role in changing the thoughts and views of consumers
because company’s employees represent company’s image. In order to have a positive
environment outside the company, it is important to show positive attitude towards employees
from all cultural backgrounds and religion. By hiring talented and smart employees from all
over the world, it increases the company’s reputation, performance and also can learn about
multicultural differences. The unity in workforce can bring peace in both the countries and also
the workplace. This positive influence can spread through media; internet and radio which
makes company’s image rating go high and indirectly helps the company in getting customer’s
trust in that brand and their products.
Companies work on providing donations, food drives, toys for needy, blood drives as
their social responsibilities and thus take every step possible to have a long term positive
relations among all countries. According to the UN reports, companies doing business globally
have better experience, knowledge, and techniques to help in improving the different cultures
and understand everyone’s beliefs and respect them.
Businesses done internationally should be careful in marketing so that companies do not
offend any country’s religion beliefs or culture because one wrong decision would result
adversely against company’s image and might lose consumer’s trust and loyalty. Thus having
every different cultured employee is important so that company have an understanding of
different culture, religion, and beliefs. Companies should take an initiative to improve the
situation among different countries and be careful about what they are marketing is not
offensive to any country. When a particular company takes interest in improving the condition
of conflicting countries, it increases the image, thus increases the sales of their products and
helps in bringing harmony and understanding between people of two conflicting countries.