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THREE ISSUES
Three Issues Currently Affecting International Business
Three major issues currently affecting international business are trade deficits, renegotiating NAFTA, and the global market. A trade deficit can cause unemployment to increase within the country, directly impacting international businesses. If the country relies more on imports than exports, people within the same region will not find jobs. Businesses are meant to produce greater job opportunities for the economy, hence contributing to a better future for the workers. However, a trade deficit would not probably facilitate such situations and adversely affect peoples jobs within the country (Congressional Research Service, 2020).
NAFTA has been a great source of boosting international business as it helped reduce the costs of business, enable investment and growth, particularly for small businesses, and formulated agreements to protect investor rights (Amadeo, 2020). Renegotiations of this agreement require the workers rights and protection to be bold and clear so that international businesses and policies do not find loopholes and impose their conditions. International businesses would have to rethink ways where labor provisions must be complied with to avoid any lawsuit. International firms must know while working in other countries. Each region has its law and ways of enforcing them. Thus, encouragement of offshore jobs would only be possible if NAFTA is promised with core rights being observed strictly. Fundamental human rights, labor standards, and equity are all-inclusive in the NAFTA statements, even...…a business needs to be aware of while conversing with foreign teams and their members. Any risk or potential of misunderstanding can create long-term consequences for the business; the enterprise must look over the complexity of culturally-specific terms and colloquialisms. Finally, strategic pricing is the power international business needs to inherit to handle global issues shrewdly (Toni et al., 2017). The internal capacity of the firm to deal with economic and financial intricacies is based upon the firms basic systematic interpretation of the global market conditions. It would directly affect the profits and, therefore, must be done by analyzing the perceived value of the product or service, intrinsic costs, and aligning with the competitive pricing within the…
References
Amadeo, K. (2020, December 26). 6 benefits of NAFTA: Advantages and positive effects. The Balance. https://www.thebalance.com/advantages-of-nafta-3306271
Congressional Research Service. (2020, December 9). The US trade deficit: An overview. https://sgp.fas.org/crs/row/IF10619.pdf
Romani, L., Mahadevan, J. & Primecz, H. (2018). Critical cross-cultural management: Outline and emerging contributions. International Studies of Management and Organization, 48(4), 403-418. https://doi.org/10.1080/00208825.2018.1504473Toni, D.D., Milan, G.S., Saciloto, E.B. & Larentis, F. (2017). Pricing strategies and levels and their impact on corporate profitability. Revista de Administracao, 52(2), 120-133. https://doi.org/10.1016/j.rausp.2016.12.004
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