International Business, 2nd Edition by Pearson

Fundamentals of International Business 9

Operational Complexities: Operationally, international business is often more difcult and costly

to manage than activities in the domestic market alone. These difculties manifest themselves in all

functional areas of the business. For example, local employees and expatriates (employees from a

foreign country) may have trouble getting along

with each other because of cultural and language

differences. The cultural diversity encountered

when operating in several countries may create

problems of communication, coordination and

motivation in the employees of the organization.

Organizational principles ...