The Impact of Politics on Business Internationally

February 16, 2015

MANG425-02

Elena Aguilar Garcia de la Cuadra

The Impact of Politics on Business Internationally

Table of Contents

Introduction 3

Purpose 4

Research Questions 4

Methodology 5

Literature Review and Analysis 6

The 30 Day MBA in International Business 6

Business, Society and Politics: Multinationals in Emerging Markets 7

Global Business Management: A Cross-cultural Perspective 8

Political Risk: When Diversification Isn't Enough 9

IE Professors Talk 10

Ukraine crisis: Angela Merkel 'offers Russia free trade deal for peace' 11

South Korea Appeals Tariffs Imposed by U.S. on Steel Pipes 11

Conclusion 11

Citations: 13

Introduction

When you travel to a different country and find out that one of your favorite clothing stores is also in that new territory, you are being witness of international trade. When the United States imports oil from Mexico, international business is taking place. Nowadays, we can buy a product to an American company, made in India, and sent to France in matter of hours. This recent simple process for consumers takes place due to globalization.

In the last decades, the world has become totally interdependent as a result of several factors such as: technological advances, transportation improvements, diminutions in barriers and borders, and market liberalization. Globalization has made much easier the creation and survival of multinational enterprises. In some markets, it is essential for companies to internationalize to keep up with their competitors’ prices.

Nevertheless, the internationalization process is very complex and varies depending on the type of business and location. Some of the most challenging factors of internationalization for companies are related to governmental issues, such as inadequate legal systems and bureaucracy; lack of transparency and differences in political systems. When a company decides to outsource, produce in a different country, it has to face several...