International International Business Business CommunicationCommunication

Business in a global economyBusiness in a global economy

Introduction NotesIntroduction Notes

In light of the increase in international business activities, many employers expect employees to have an understanding of the global workplace. This is especially so as more local, state and national organisations develop contacts and conduct business dealings with other countries.

Australia’s economy has become a truly global one, and economic competitiveness is vital if industry is to succeed. Being able to complete international business transactions without offending trade partners involves being sensitive to religions, customs, business philosophy, political and family structures, history, trade laws, and language and communication practices.

International business dictates that organisations recruit employees who are prepared to be involved in careers that cross international borders, and which may require them to live and

work in other countries. It is vital, therefore, that employees learn about the countries with which they deal and prepare thoroughly

ActivityActivity

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Many firms develop their own programs to prepare employees for overseas assignments, while some adopt screening and selection instruments to select suitable candidates for international business postings and negotiations.

One of the most reliable of these is the Overseas Assignment Inventory (OAI), a screening and selection tool that Dr Michael Tucker began developing in the 1970s.

The OAI measures common attitudes and characteristics that are shared by successful international executives, as well as attributes that are crucial for successful adaptation to other cultures. It also ensures that an organisation knows the strengths and weaknesses, in relation to intercultural adjustment, of candidates being considered for international assignments.

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Developing initial relationships in an overseas market is often a lengthy process but efforts are rewarded through the numerous opportunities that arise once these relationships are established. Many countries have cultural and religious traditions that Australian businesses must respect. For example:

the use of animals in advertisements may be highly offensive in some cultures but amusing and quite acceptable in others

pictures of women in promotional materials may be unacceptable if the women are incorrectly attired

certain colours and numbers have different meanings in different cultures, so what works well in Australia may not necessarily transfer to another context.

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Businesses must, therefore, carefully monitor their promotional materials to avoid a backlash from overseas markets.

Supporting Trade Supporting Trade OrganisationsOrganisationsAustralia’s major trading partners include Japan, China, the United States, the Republic of Korea, New Zealand and theUnited Kingdom.

There are several organisations, both government and non-government,

that can help businesses form trade links with other countries, including:

Austrade the Australian Institute of Export Chambers of Commerce and Industry TFI Global World Trade Centres the Australian Department of Foreign Affairs and Trade

These will be explored in more depth next lesson.