?Political and legal challenges faced by managers in a foreign country:Introduction:Managers starting a business in a foreign country face a lot issues and challenges such as the political and legal, the economic environment and the cultural environment. The manager must research the country well to be prepared of the challenges he may face. It would also give him an overview of what he would have to deal with.Reference 1:Laws and regulations:This is an important factor that should be considered and researched effectively or else the business would go downhill, if the manager is ignorant of the business legalities and regulations of the country in which they are operating in. The government tax laws and also the health and safety standards which usually vary from location to location.
It is your responsibility as a manager to learn the laws that could affect your operations wherever, they could be. There are systems that you have to abide by. You should also remember that things could possibly change fast in certain areas due to shifting political power. ~Dellinger, Walter & Fried, Samuel PWorld policy journalSummer 2008, Vol.20 issue 2Reference 2:Currency issues:This factor plays a significant role about whether your business will be successful or not.
Also the size of your firm plays an important role it could easily influence your financial decisions in firms. For example: large firms tend to have an effective risk management strategy, which has to be guided by a good team of risk management in order to minimise the business risk and maximize the firm’s value. You are going to be more likely dealing in foreign currencies when you operate overseas. To ensure that you complete transactions efficiently, you must have an idea about the conversion rate and also keep updated if there is change in the exchange rates.
Also as a manager you should come prepared. If you are an entrepreneur and want to go to a foreign country to set up your business. You must know the exchange rate of the country you are, going to so you have a fair idea of how much you could buy of the other currency. For example: if you want to set up in England you need to have more euros because the pound is more expensive but if it was America it would be the opposite.~Roselene Yam Sou Cheng, Ei Yet Chu, Saw Imm Song ; Tian So LaiGlobal business ; management research.
2017 special issue, Vol.9Reference 3:Employment laws ; protection laws:Employees in every country have different rights and responsibilities, so the employee protection laws that are based on employees in your country could differ from the ones in a foreign country that’s why you have to adapt to the policies in the foreign country you moved to. That is why you should study the different laws carefully and abide by them. You have to take into consideration the number of working hours and the length of breaks that they are entitled to because if you don’t you would be breaking the protection laws which could lead to serious matters. You can’t have discrimination or unfair dismissal.
Also you should take cultural differences into consideration as they may differ from your home country and they could affect the employee’s performance. ~Aguzzoli, Roberta ; Geary, JohnHuman Relations. May 2014, Vol.
67 issue 5Conclusion:Overall you have to be familiar with the laws in that country and abide by them to minimise the challenges you would face. Also communication is key to success; therefore you have to know the language of the country, because if you are not fluent in the language you can give misleading orders to employees which could cause damage to both the employee and the business.