Capter one question and chapter 6 Case Study (International Business) Essay

Capter one question and chapter 6 Case Study (International Business) - Essay Example These ventures are also subject to restrictions that are not found locally. You can expect to face four different types of risk during this proposed expansion. Cultural risks include unfamiliar ethics and negotiation styles, while commercial risks come from potentially weak international partners, as well as increased operational costs. Additional threats come from currency differences, and country risks that are closely tied to the national political system of each participating nation. I hope that you will research these factors prior to launching an international campaign. I am certain that you will come to understand the importance of altered strategy in international business endeavors, at which time I would be happy to offer further assistance should you desire. The assigned case presents the factors that have allowed Hyundai to become a leading force in the international automobile industry. They are introduced as one of the few auto businesses to maintain profits during the global financial crisis of the late 2000s. Several suggestions are offered to explain the success. The company benefits from local influences like the availability of skilled labor for low costs, and the advantage of a weak domestic currency that made international customers interested in their products. Demanding South Korean consumers also inspired a highly competitive local market that requires consistently high quality, exceptional customer experience, and regular innovations in order to compete. These standards contributed to the original success of Hyundai entering foreign markets. Another important influence is global integration achieved through diversifying the locations of operations, though this also presents the threat of excess capacity. Hyundai`s success is ultimately attributed to their determination to remain committed to growth despite external financial crises. 1. The local population provides