International Business Ventures in Developing Countries

Question: Discuss about the International Business for Ventures in Developing Countries. Answer: Introduction: Foreign Direct Investment is an emerging economic trend in the world and it helps in better exposure and growth of a business. However, Foreign Direct Investment is related to overseas business and international business exchange (Dunning 2012). The home country of the multinational companies has different sets of cultural beliefs, laws, and regulations that make any kind of business investment a bit difficult. There can be various kinds of ethical dilemma in investing in the home countries of the multinational enterprises. The ethical dilemmas can be further discussed and also some recommendations for the employees of the multinational enterprises, the host countries and so on can be provided. The ethical dilemmas in this prospect can be the difference in culture, the difference in official rules, difference in investment rules and so on (Roberts 2015). Certain examples are there that show how multinational companies or enterprises has developed their trade meticulously in various c ountries like, Brazil, India, Mexico, China and so on. Foreign Direct Investment is an ever-growing business and with the expansion of the business ethical concerns come in the discussion, since this kind of investment needs to know and adapt to the political, social and cultural scenarios of the other countries. The human resources in the rapidly developing multinational enterprises have a different set of outlook and working culture as compared with the employees of other countries or organization. Understanding of the institutional rules and regulations is also important and the morale or the principle of the foreign direct investment is very much dependent on this factor. The executives of the multinational companies can bring in some change in their working procedure and work towards the development of their home country through the foreign investment procedure. The executives can conduct a thorough research of their home country in order to understand the trade needs, the contemporary trade rules, and regulations. The labor union leaders or the labors have to be more tolerant towards the new changes (Rugman 2012). The labors have to accept globalization and the rigidness regarding wages and other demands should be reconsidered in order to usher in new trade and to establish a good trade relationship. The mobilization of labors should also be done to increase the international trade prospect. However, the host country officials or the firms before investing in other countries for the prospect of business should be well aware of the principles on which the country works. In todays time, the growth of foreign investment in the developing nations is qui te high and the host country officials should have a thorough knowledge about the democratic, political and cultural situations of the country in which they are going to invest (Dunning 2012). On the contrary, to this, the home country officials should understand the necessity and importance of the foreign investment. They should also have an understanding of their own market position and condition to adapt to the necessary changes that would be brought about by the foreign direct investment. Successful international business can only be developed by taking risks or investing in risk factors (Cavusgil et al. 2014). Mike's international business is spread in places like North America and the European Union. However, Mike's companies are not doing well since they are guided by old marketing principles and as a result, the competitors are gaining more prominence and visibility in the international market. The managing body of Mike's company is governed or regulated by the family members, who established or founded the company and are quite old, fashioned in conducting international business. However, in this prospect in order to develop the market position of Mike's company the economic factors, the corporate governess, the prospect of the growth of emerging markets and so on can be further discussed. The economic factors that the CEO, Mike can keep in consideration in this scenario for the success and development of his business are the taxes, the management policies, the cost of labor and the governmental policies of North America and the European Union (Hennart 2013). Mike can analyze these factors, which will help him to make his overseas business more successful. The companies in North America and the European Union can adapt to the contemporary management policies, taxation policies, and labor policies of the nations to compete with the other home companies. Mike can also concentrate on developing a business model that will bring profit to his organization. Mike can develop a V4 BM framework that will help Mike to analyze the propositional value, the network value, the financial value and the architectural value of his companies (Teece 2014). These will formulate a definite business model for his organization and based on that the company can proceed with its work. Having a definite business model is utmost important since on it depends on the success and development of an organization. Mike can also study about the emerging markets in North America and the European Union to compete with the other companies. With the increase in the foreign direct enterprise, many multinational enterprises are being established in the European Union and North America and hence adhering to the corporate governance norm for running an organization in a foreign land is utmost important. Mike can make necessary or required changes in his firms as per the laws and regulations of the country, where his firms are operating. Corporate governance includes several important things like the behavioral aspect of the employees, transparency and clear communication in an organization, a balanced ethical approach and so on. Mike can also focus on developing strategies that will be beneficial for the growth of his companies. Resource-based strategies can be developed by Mike to analyz e or understand the performance the firms or the organizations (Roberts 2014). Mike can also focus on a SWOT analysis strategy to understand the threats, the weakness, the strengths and the opportunities of his companies. However, it is recommended that Mike being the CEO of the companies can initially recruit a new board of members and who are quite contemporary in their approach to trade or international business. Reference: Beamish, P., 2013.Multinational Joint Ventures in Developing Countries (RLE International Business). Routledge. Cavusgil, S.T., Knight, G., Riesenberger, J.R., Rammal, H.G. and Rose, E.L., 2014.International business. Pearson Australia. Dunning, J.H., 2012.International Production and the Multinational Enterprise (RLE International Business). Routledge. Hennart, J.F., 2013. From The American Challenge To The Dragons At Your Door: Forty Years Of Work On The Theory Of The Multinational Enterprise.Philosophy of Science and Meta-Knowledge in International Business and Management,26, p.5. Moran, T.H., 2012.Foreign Direct Investment. John Wiley Sons, Ltd. Roberts, C., 2015. Foreign direct investment.AusIMM Bulletin, (Oct 2015), p.80. Rugman, A., 2012.New theories of the multinational enterprise(Vol. 33). Routledge. Teece, D.J., 2014. A dynamic capabilities-based entrepreneurial theory of the multinational enterprise.Journal of International Business Studies,45(1), pp.8-37.