Imagine that you and a group of your fellow classmates own a

Imagine that you and a group of your fellow classmates own a company that manufactures cheap sunglasses. To lower production costs, you want to move your factory from your developed country to a more cost-effective nation. Choose a prospective country to which you will move production. What elements of the national business environment might affect your move? Are there obstacles to overcome in the international business environment? How will managing your company be different when you undertake international activities? What challenges will you face in managing your new employees? What types of elements must be considered when selecting a country for investment?

Solution

To lower production cost, i would advise my group to move to a developing country like India or China.

The following elements of national business environmnet would effect my decision.

1. Investment barriers in the country.

2. Political stability of the country.

3. Level of globalisation in the country.

Yes, there are obstacles to overcome in the international business environment such as licencing requirements, acceptance from the foreign country etc. Managing a company is different when u take international activities because then you have to focus on increasing your market base in other countries. Moreover, it gets difficult to adapted to various markets.

The challenges faced while managing the new employees are language barriers, cultural differences and difference in the working environment.

The elements that should be considered when selecting a country for investment are tolerance for risk, return on investment and attractiveness in the market for your product.