International Business: Strategy and Operations by Edgar P. Hibbert (auth.)

By Edgar P. Hibbert (auth.)

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International business 41 host governments, concerned to expand the local manufacturing base and to increase export earnings from output, now operate various forms of tariffs, non-tariff measures and other restrictions and regulations that make direct exporting of finished goods into their countries increasingly costly and difficult. All this requires a positive policy on the part of the company's management towards direct investment in overseas operations. • Decision criteria Clearly, a major set of decisions about internationalisation confronts management.

The developing countries occupy most of Africa, all of Latin America, the Indian sub-continent and South-east Asia. It is clearly difficult to generalise but climate is generally tropical with extremes of drought or excessive rains. Communications are usually poor and links with other countries owe more to colonial history than to current conditions. 5 Notes: * No recent trade data available. **These are approximations based on IMF statistics and UN sources to 1990. International trade 29 televisions and refrigerators.

The immediate task is to develop a cadre of managers able to operate effectively in a multi-cultural environment. 40 • International Business Operational aspects Many companies recognise that, as their overseas business develops, decisions have to be faced about the extent of investment in and commitment to major markets, in order to secure the company's long-term market position. Such decisions concern investing in and setting up overseas production operations and, sometimes, buying sales and distribution companies locally in order to ensure sales outlets for the required investment in output.

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