Discuss about the Contemporary Issues in International Business.
The conceptualization of International business is aimed to focus on the both controllable and uncontrollable forces. The controllable force is referred to the internal forces which exist within an organization. In other terms, these are forces, which the organization can control, for instance the management team will be able to control issues related to personnel management and the employee grievances related to taking initiatives to relocate abroad (Broucek et al., 2012).
The uncontrollable forces can be defined as those forces, which the organizations do not have control. For instance, the climatic barrier, cultural barriers, competitors, Government intervention and the policies taken by the Government are directly related to the different types of the external forces, which affect the international business in an organization. In terms of the present issues relate to the international the entrepreneurs are facing a major issue related to the advancement in technology and fierce competition due to the rise of ecommerce and fierce competition across international borders (Ball et al., 2012).
The research proposal is intended to highlight the present issues, which exist in the international business scenario. The main analysis will be shown in terms of the understanding the important elements of the international business. The research will then include doing a macro environmental analysis, which will be able to focus on the key elements related to the topic. The research will be based on different types of primary as well as secondary data. The analysis will be further based on the development of the research questions and hypothesis (Neelankavil, 2015). The main formulation of the research questions will be based on the knowledge and awareness of eh macro environmental elements affecting international business. These elements have been seen in respect to the manager, who are involved in running an international concern. The research will also present the hypothesis, which will predict the reliance of online marketing in International Business (Griffin & Pustay, 2012).
International business and contemporary issues
The commercial transactions such as investments, logistics related, sales and private transactions taking place between two or more countries going beyond the national borders is termed as international business. Hence, the international business may be referred to as those international transactions, which involves cross border transaction of goods, services or resources between two or more nations (Cavusgil et al., 2014).
The primary contemporary issues in the international business has been seen with the influence of global, ecological and cultural factors which are responsible for driving the business in a particular region. It has been also observed that the international business is directly dependent on the different types of the aspects which are directly related to the market variables controllable (internal) both the uncontrollable (external) and uncontrollable market forces (Wu & Hsu, 2013). Some of the major aspects of internal business for sustainable and profitable sales of the business has been seen in terms of influencing critical mass, commitment to business, capital, connectivity, country acumen, continuous innovation, confidence and dealing with competitive products and services (De Castro, Khavul & Bruton, 2014).
Macro environment of international business
The macro environment is often referred to as the external forces, which affects the important decisions related to international business. The macro environment consists of the different types of the elements such as technological, economic, legal/ political, climatic factors and the cultural barriers, which is persistent across international borders (Verbeke, 2013).The various types of the studies related to eh macro environmental analysis has been studied with the use of the PEST analysis. The contemporary legal barriers have been seen in terms of tariff and non tariff across international borders. This has a critical impact on the cross borders transactions (Hamilton & Webster, 2015).
Research Questions and Hypothesis
- Are the managers aware of the influence of macro environment elements in International business?
- Do the innovations in Ecommerce have brought a paradigm shift in International business?
- Can the contemporary issues in international business be solved with an augmented focus towards online marketing?
The following hypothesis will be set in order to make recommendations for the contemporary issues in International Business:
- Null Hypothesis (H0): The contemporary issues in International cannot be addressed using online marketing through company website and social media platforms like platforms like Facebook, Twitter, Instagram and YouTube.
- Alternative Hypothesis (H1): The contemporary issues in International business can be efficiently addressed using online marketing strategies, such as website and social media platforms like platforms like Facebook, Twitter, Instagram and YouTube.
Operational definitions and measurements
The scope of the data will be collected in terms of limiting the respondents to 50 in order to avoid any kind of complication with the research technique. The different types of the responses will be measured in terms of using a Likert scale; this is a scale, which represents the attitude of people towards a particular topic. There will be several parameters set for the execution of Likert Scale. The responses will be converted in terms of percentage for the purpose of quantitative analysis of the primary analysis of data from the respondents.
Research Methodologies: Data Collection and analysis
The sampling technique will be mainly based on primary data analysis. The total respondents have been observed to be 50. Among, the 50 respondents 25 are expatriates with international assignments and 25 are managers who are planning to expand their operations beyond the national borders.
Method of Analysis
The collection of the primary data will be mainly based on a survey method. The different types of the parameters and the responses for the questions will be converted in percentage values for a better understanding of the responses. The quantitative data analysis will be further based on producing a central tendency analysis of respondent’s data. In order to get a better understanding of the data some of statistical tools which will be used are Sample Variance, Skewness, Standard Deviation and the median of the given. The secondary analysis will take into consideration the theoretical bases considered for the study of the literature review.
The initial research process will begin from the identification of different type of contemporary issues, which persists in the international business environment. The data collection process will then be initiated with the survey procedure. The formulated questions will be asked to 25 managers and 25 employees who are directly related to the international business operations. The analysis will be conducted using central tendency approach and finding out of descriptive statistics values of the associated data.
The research result will be able to signify the knowledge of macro environmental elements in International business among the entrepreneurs and managers. The research result will be able to show the innovations in Ecommerce in bringing about a significant change in International business.
The main interpretations of the primary data will be based on the survey questionnaire prepared for the 50 respondents. The analysis of the data will be based on different types of the questions, which will range from awareness of both the managers and expatriate employees. The analysis of the questions will be based on percentage of responses for the options provided in the Likert scale, such as Very Strong Influence, Strong Influence, Marginal Influence, Slight influence and no influence at all. The analysis will depict the result about the influence of macro environment elements in International business, rationale whether innovations in Ecommerce have brought a paradigm shift in International business and lastly the rationale for providing solution to the contemporary issues in international business with an augmented focus towards online marketing.
The secondary data analysis will take into consideration the International business and contemporary issues and the study of Macro environment of international business. The main analysis of the hypothesis testing will be based on the interpretation of both primary and secondary data results for question 3. The decision related to accepting or rejecting of the hypothesis will be based on the inclination of the respondents for the options in question 3.
The detailed analysis of the different type of findings has been considered in form of theory base, background of literature, the review of the relevant literature, the interpretations techniques has been applied to the relevant questions, and the hypothesis selected for the data analysis. The interpretation of the awareness of influence of macro environment elements in International business has been seen with partial awareness among the respondents. The macro environmental analysis has shown inclination towards agreement on the second parameter which is shows that the respondents partially agree to awareness of influence of macro environment elements in International business. The secondary interpretation also shows the tendency of the respondents to select partial awareness. The respondents have further shown agreement of marginal influence of ecommerce in international business. Based on the interpretation of the responses for question 3, it has been also observed that the addressing of International Business Issues with online marketing is neutral in nature. Hence, the null hypothesis (N0) associated to addressing of contemporary issues in International business cannot be addressed using online marketing through company website and social media platforms like platforms like Facebook, Twitter, Instagram and YouTube cannot be rejected. Hence, there is a need to go in favor of the alternative hypothesis.
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