Report module topic 1-6 international business management Essay

Report module topic 1-6 international business management - Essay Example However, the MFC is bound to face both tariff and non-tariff barriers by operating on an international scale. Moreover, MFC will experience effects of trade protection as barriers to international trade. These challenges are compounded with the presence of political and legal risks, which affect the business in a number of ways such as business registration, taxation, licensing and reputation of the company. Cultural factors are also an issue in international trade that needs proper integration of people and ideas. In an attempt to help people understand cultural inclinations and influence Geert Hofstede came up with five fold framework of culture that has been discussed in this paper. At the same time, MFC will enjoy benefits of being a member of international trade organizations such as WTO and regional trading blocs and custom unions. Therefore, international trade is in general beneficial to MFC and the company can go worldwide while understanding aspects related to international for strategy formulation and management of business. Table of Contents Title 1 Executive Summary 2 Table of contents 3 1.0. Introduction 4 2.0 International trade 5 2.1. Reasons Why MFC chooses to trade internationally 5 2.2. Major types of international business the MFC will set up in the short-term and long-term 7 2.3. Globalization 8 3.0. ... Types of strategies MFC can use to manage political and legal risks 12 5.0. Culture and cultural frameworks 13 5.1. Hofstede’s cultural dimension 13 5.2. Strength and weaknesses of Hofstede’s Framework relevant to MFC’s managers 14 5.3. Ways on how cultural characteristics influence patterns of communication for MFC;s managers in USA and in India 15 5.4. Ways on how MFC’s managers improve cross-cultural communication international trade organizations 16 6.0. Trade organization (international) 16 Â  6.1. Ways on how MFC can use the range of international trade organizations 16 6.2. Influence of regional economic groups to MFC 18 7.0. conclusion and recommendations 18 Reference list 19 1.0 Introduction The Magic Fuel Company (MFC) is an Australian public company specializing in the production of fuel additives and other fuel products. Experimentation with fuel and the utilization of additives to make engines run more efficiently has resulted in the producti on of a super concentrated fuel gel which has the potential to reduce all fuel to approximately 20% of current volume and increase the efficient burning of the concentrate by up to 200% of current refined fuel products. This means that each litre of fuel is equivalent to approx 200 ml of gel and fuel usage is reduced to half current usage. Using the fuel gel a car with a 60 litre tank using 10 litres per hundred kilometers of conventional fuel could carry the equivalent of 300 (5*60) litres and travel approximately 3000 kilometers per tank. The gel is the same weight as current fuel, is less volatile and has a longer shelf life. MFC is aware of the potential of the new technology the company has developed to refine crude petroleum and the value of the special additives for the gelling