This is an argumentative essay which is based on the Journal “An institution-based view of international business strategy: A focus on emerging economies” which was authored by Peng, Mike among others and published in 2008 in the Journal of International Business Studies. Strategic management of international business is essential in ensuring that the businesses are successful in their operations and remain competitive in the international market ….
According to Shenkar & Luo (2007) a country which has stable economy and is able to reduce on its production cost they can afford to sell their goods and offer their services at a subsidized cost and still be profitable. Therefore due to this strengths China can afford to sell their goods and offer services at a very competitive price and still remain competitive unlike most other countries. Entry of China in United States market is not welcomed because it is defined by the antitrust law …
The management style should focus on minimizing managers and shareholders conflicts which is evident in most firms which have performed poorly in the market. All stakeholders should be involved in decision making in management and administration of such corporations so that they would incorporate the interest of all stakeholders to minimize conflicts which mostly leads to poor performance of such firms in the international market….
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