LINGKUNGAN BISNIS INTERNASIONAL - MK BISNIS INTERNASIONAL PERTEMUAN 2

Summary

In this international business class, the focus is on understanding the global business environment, covering elements such as culture, politics, legal frameworks, technology, ethics, and social responsibility. The importance of recognizing cultural dimensions and their impact on business behavior, the legal systems around the world, and dispute resolution methods are emphasized. The script also explores political risks, technological influence on business, and how ethics and corporate social responsibility shape global business strategies. International organizations play a key role in facilitating global trade and cooperation.

Takeaways

• 😀 Globalization has transformed business, expanding opportunities for companies to operate internationally, making it essential to understand the international business environment.
• 😀 The international business environment includes cultural, political and legal, technological, ethical, and social responsibility factors that influence business decisions and operations.
• 😀 Culture plays a critical role in international business, affecting behaviors, communication styles, and business customs. Understanding cultural differences helps companies adapt and succeed in foreign markets.
• 😀 Key cultural dimensions include individualism vs. collectivism, power distance, uncertainty avoidance, goal orientation, and long-term vs. short-term orientation, all of which shape business practices in different countries.
• 😀 Business negotiations can be affected by language differences, varying values, and distinct thought processes across cultures, making it important to manage communication and expectations carefully.
• 😀 Political and legal environments differ from country to country, with varying trade laws, investment policies, and tax regulations. Companies need to understand these differences to navigate international markets successfully.
• 😀 There are different legal systems in international business, including common law, civil law, religious law, and bureaucratic law, each with its unique rules and procedures for dispute resolution and business operations.
• 😀 Dispute resolution in international business can involve litigation, arbitration, mediation, and negotiation, with each method offering different levels of involvement from neutral third parties.
• 😀 Political risk in international business can include ownership risks, operational risks, and transfer risks, which businesses must evaluate when entering foreign markets.
• 😀 Technology is essential for improving business processes, reducing costs, and enhancing product quality. However, protecting intellectual property rights is also crucial in international markets.
• 😀 Ethics and corporate social responsibility (CSR) are critical in international business. Companies must respect local cultures, adhere to ethical standards, and engage in socially responsible practices to build trust and a positive reputation.

Q & A

Why is understanding the international business environment crucial for companies today?

Understanding the international business environment is crucial because companies are no longer limited to domestic markets and must adapt to global competition, cultural differences, political and legal frameworks, technological advancements, and social responsibility expectations.

How does culture influence business behavior in international markets?

Culture influences business behavior by affecting consumer preferences, communication styles, and attitudes toward business partnerships. For example, a strong culture may encourage family-owned businesses, while a more open culture may embrace foreign partnerships.

What are the key elements of culture that businesses need to understand for successful international operations?

The key elements include social groups, values and attitudes, language and communication, and religion. These elements shape business practices, consumer behavior, and interactions between businesses and customers or partners.

What are the cultural dimensions proposed by Hofstede, and how do they impact business?

Hofstede's cultural dimensions include individualism vs. collectivism, power distance, tolerance for uncertainty, goal orientation, and short-term vs. long-term orientation. These dimensions impact how societies prioritize values, handle power inequalities, approach risk, and focus on short-term or long-term goals, all of which influence business negotiations and strategies.

What role does language play in international business negotiations?

Language plays a critical role in communication and building relationships between companies and partners in other countries. Misunderstandings or differences in communication styles can hinder negotiations, making language proficiency and cultural sensitivity essential for successful interactions.

How can companies address cultural differences that arise during business negotiations?

Companies can address cultural differences by understanding and respecting different cultural values, providing language training, using local translators or consultants, and being sensitive to differences in business practices and communication styles.

What are the four main legal systems in international business, and how do they affect companies?

The four main legal systems are common law, civil law, religious law, and bureaucratic law. Each system impacts business operations differently, influencing legal interpretations, dispute resolution, and regulatory compliance based on the legal framework of each country.

What is political risk, and how does it affect international businesses?

Political risk refers to the potential for business disruptions due to changes in political, economic, or legal conditions in a country. It can lead to financial losses, changes in business regulations, or even the threat of business closure or expropriation.

Why is technology important in the context of international business?

Technology is crucial in international business because it enhances operational efficiency, reduces costs, improves product and service quality, and facilitates communication and collaboration between companies across borders.

How do ethics and social responsibility impact international business operations?

Ethics and social responsibility influence how companies build trust and a positive reputation in global markets. Ethical behavior ensures fair treatment of employees, customers, and partners, while CSR initiatives demonstrate a company's commitment to environmental and social causes, which can enhance its global image.