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Today, the business world is more interconnected and global than it has ever been in the past. Because of significant advances in technology, it is easier than ever to run a company across borders; however, there are also a lot of challenges in the international business world. It is important for aspiring business professionals to listen to experts, such as Mikhail Kokorich, who can guide the journey. What are some of the top challenges in international business?
1. Currency Exchange and Inflation Rates
One of the most notable challenges of international business involves currency exchange. According to Mikhail Kokorich, many countries have regulations regarding which currencies can and cannot be accepted during international business transactions. As a result, the exchange rate between currencies can fluctuate daily, and this volatility can impact business deals. Furthermore, with inflation playing a significant role worldwide, international business transactions have become more difficult. Therefore, professionals in global business need to manage currency volatility and inflation rates, factoring them into any potential business transactions.
2. Time Zone Differences
Time zone differences also play a significant role in international business deals. There could be a six or seven-hour time difference between the United States and Europe. There could be a 12-hour time difference between the United States and Asia. These time zone differences can make communication very difficult, even though technology has removed a lot of barriers. According to Mikhail Kokorich, it is still not unusual for companies not to consider time zone differences when scheduling phone calls. This is something that international business professionals need to be wary of when they are trying to manage global teams.
3. The Intersection of Economics and Politics
Finally, Mikhail Kokorich is deeply aware of the intersection between economics and politics. Money is power, and it is not unusual for governments to coordinate closely with some of the most valuable companies within their borders. In some situations, a landmark international business deal could run into hurdles because of political differences between the countries. Businesses need to use their lobbying power to streamline international business transactions. This requires a specific set of skills, and companies must depend on vibrant, enthusiastic professionals who can advocate for their needs behind the closed doors of government sessions.
The Future of Business Is More Global Than Ever
Ultimately, these are just a few of the many examples of challenges that people may face in the international business world. If you are interested in starting a career in international business, you need to consider these challenges ahead of time. You will probably encounter them early on in your educational career, and if you are knowledgeable about them, you may have an easier time today being accepted to graduate programs. Remember that you do not need to face these challenges on your own. Experts, such as Mikhail Kokorich, are available to mentor young students interested in international business.
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