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The report is for International Business- to achieve hug profit margin and to make a strong mark in the business world

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International Business

Introduction:

            Internationalization is known concept in the business world. Every small and large business organization are now a days aiming to expand business in the foreign country to achieve hug profit margin and to make a strong mark in the business world (Stahl et al. 2016). Although, it is not much challenging for the large states of developed countries to expand business internationally as they have all kind of facilities that are required for international expansion, the business organizations of small states of developing or under developed countries face massive challenges during expansion due to immense vulnerabilities (Cano-Kollmann et al. 2016).

            The following article has concentrated on the vulnerabilities of small states that restrict their growth in international market.

Analysis:

            According to Briguglio (2014), small states often suffer from various vulnerabilities that are highly responsible for weak financial structure and lack of population. According to Nurse et al. (2014), there are various kinds of reason for the vulnerabilities of small states, such as- security threats, geographic vulnerabilities, environmental vulnerabilities, economic vulnerabilities and social vulnerabilities. Small states preserve vulnerabilities in various manners, such as- small states need to rely greatly on imports. It can be international imports or import from big cities. On the other hand, the economy of the small states is mainly based on farming, fishing or on cottage industries. No large manufacturing firms exist in small states due to its poor condition and various other vulnerabilities. It affects the economic growth of the states in negative manner. Eventually, the small business organizations of small states do not get the sufficient economic support to expand their business internationally. According to Zaman and Vasile (2014), government does not invest much in the development of small states, which affect the growth of the states as well as the small industries of small states.

At the same time, due to poor economic condition the education system of the small states is greatly affected (Lee, Hampton and Jeyacheya 2015). As a result people often fail to avail modern educational system in small states. Hence, small business organizations fail to hire educated and skilled employees in organization, which affects their production process of the organization. In this scenario, it is not possible for any organization to compete with the international competitors.

Social barriers play major role in the growth of the organization, as business organizations operate within a society and it is important to maintain a healthy relation with the local communities and people for a better future of the organization (Burns 2016). However as the educational rate in small states are remarkably low, it often acts as a social barriers for the business organizations. Local people often restrict business leaders to perform their role. This put harmful impact on the organizational development and international expansion.

As opined by Panke (2016), one of the major vulnerability of small states that is the technical infrastructure of the small states. It is known that internet and social media plays vital role in the expansion of business organization internationally. It is used as a weapon for the business leaders to support the international expansion of the organization, as it helps the leaders to gather information about the foreign country or to choose the best and suitable method to enter into the country. However, it has been noticed that in small states the rate of computer literacy among the population is remarkably low. People are not aware of the fact that how to use computer for the benefit and growth of the organization (Briguglio 2014). On the other hand, due to technological disability, internet and social media service is not available for the people. Large number of people is not aware of the usage of internet and social media. Thus, it acts as a major obstacle for the small business organizations to grab the attention of the international market towards their products and business organization. It is known that it is not always possible to enter into the country physically for small business organizations or set up business in the foreign countries. In this scenario, internet helps the business leaders to draw the attention of their target market from the entire globe (Zaman and Vasile 2014). However, due to lack of knowledge about new media and modern technologies, people often fail to conquer.

In this competitive business world, where every business organization is incorporating modern and innovative business strategies to make a mark in the global context, the business organizations of small states fail to achieve its target (Lee, Hampton and Jeyacheya 2015). Data shows that the small states of the world have failed match the pace with the developed countries due to the previously mentioned inherent vulnerabilities. Due to low GDP rate small states fail to adopt or take the help of modern facilities that will act as a driving force for the existing business organizations of the state (Burns 2016). On the other hand, these kinds of obstacles discourage the emerging business leaders as well. They feel less privileged than the business organizations of developed states.

Conclusion:

            As per the previous discussion, it can be concluded that as business organizations small states are not able to compete with the large enterprises in this era of globalization in terms of internationalization, large number of small states are experiencing uncertain future. The government of small states must take the initiative of resilience in the small states, so it can fight and survive within the business world. Otherwise, in nearby future these small business organizations will face major turmoil, which may affect the future of the states as well in an acute manner.

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