International Business in the Globalization Environment Dissertation

International Business in the Globalization Environment - Dissertation Example Managers tend to see the international market as societies in microcosm with their own specific cultures and ways of transmitting these cultures to their members. Samiee et al (2005) and Verlegh (2007) examine the impact on a home country and unique brand image of the product on perception and buying patterns in targeted markets. They find that national stereotypes and buyer attitudes toward countries of origin influence the buying process and profitability of the company. Another layer of literature is based on theoretical materials and concepts aimed to discuss and evaluate business strategies and international marketing trends around the world. ... They examine the impact of culture on the formulation and the application of an international marketing strategy. The home country and the host country environment constitute an open interaction system. The strategies of the firm play the primary role in the interaction; secondary roles are played by a number of other players. Special attention should be given to such countries as Malaysia, Thailand and Philippine affected by strong national culture and traditions. The results of the interaction may be more or less successful from the point of view of the firm, the host country, or other institutions or organizations involved (Balabanis et al 157). The host country environment presents another set of macro factors. On the macro environmental level, cultural forces need to be evaluated. On the microenvironmental level, the factors become more specific; they include (1) buyer-seller relationships, (2) nature of supply and demand, (3) market price mechanism, (4) nature of competition, (5) barriers to market entry, and (6) nature of the distribution. At the operational level, factors such as (1) sof t versus hard currency, (2) exchange rate fluctuations, (3) inflation, (4) tariffs and quotas, and (5) invisible barriers become extremely important (Doole and Lowe 82). Research suggests that "cultural distance" also presents a major challenge to an entrepreneur assessing the potential of the host market.