International business activities Essay Example | Topics and Well Written Essays - 1000 words

International business activities - Essay Example ic transaction processes and when they unfold on the international, cross-cultural level, they become even more challenging (Neslin and Greenhalgh, 1983; Gulbro and Herbig, 1994; Gilsdorf, 1997; Foroughi, 1998; Kumar, Markeset and Kumar, 2005). This is largely because, within the context of IB, negotiations move from the level of reaching an agreement between individuals who have comparable world views to reaching a compromise between cultures whose representatives may have divergent world views, including conflicting values (Bjerke, 2006). The implication here is that IB paradigms must be culturally sensitive and adaptable, on the one hand, and culturally-informed, on the other (Bjerke, 2006). Turning to TQM, one finds that it embrace cultural sensitivity as a direct outcome of its consumer focus (Collins, 2005). The paradigm itself is premised on the supposition that if corporations are to succeed in diverse cultural environments and to successfully engage in cross-cultural negotia tions, they have to embrace the culture of the environment in question, be it of their consumers or their business partners, and redefine themselves as insiders, rather than outsiders (Collins, 2005; Bjerke, 2006). Its embrace of sociology, therefore, marks TQM as highly well-suited to international businesses and, as a root discipline, is fundamental to the success of IB. As international business unfolds within the context of a global, as opposed to a national economy, international economics emerges as another fundamental root discipline. IB scholars acknowledge the presence of a synergetic and dynamic relationship between international economics and international business. On the one hand, IB is inextricably dependant on the health of the global economy for its own development,... International business activities International business, which has both been facilitated by and imposed upon firms by the advent of globalization, may be briefly defined as the global exchange of goods and services, or cross border economic transactions. As a number of scholars have quite rightly pointed out, international business is the internationalization and the concomitant expansion of the scope of traditional business activities. Within this context, it may also be defined as a natural evolution in the development of the scope of business activities, from the intra-tribal to the inter-tribal, from the intra-township to the inter-township and from the national to the international (Wiles and Wiles, 2005; Carbaugh, 2005; Marx, 2006; Sundaram and Black, 2007). The implication here is that while international business is founded upon the same precepts and principles of traditional/national business and, accordingly, withstands adherence to the same management paradigms, the significant expansion of its parameters and sphere of activities necessitates the embrace of sociology, international economics, politics and linguistics, to name but a few disciplines. On the basis of the foregoing discussion, TQM emerged as an ideal international business paradigm, largely because it embraces and addresses IB’s concerns. This was demonstrated through reference to three of its root disciplines, international economics, sociology and organizational theory.