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Kofi Baboni

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the international context
There never were, since the creation of the world, two cases exactly parallel.
Philip Dormer Stanhope (1694–1773); English Secretary of State

INTRODUCTION firms move out of their domestic market on to the Aswith differinglanguage, arenas.system, technologicalinternational stage, they aretofaced business The nations they expand to can vary with regard consumer behavior, legal infrastructure, business culture, educational system, labor relations, political ideology, distribution structures and fiscal regime, to name just a few. At face value, the plurality of the international context can seem daunting. Yet, the question is how important the international differences are for firms operating across borders. Do firms need to adapt to the international diversity encountered, or can they find ways of overcoming the constraints imposed by distinct national systems, structures and behaviors? This matter of understanding and dealing with international variety is one of the key topics for managers operating across borders. A second question with regard to the international context is that of international linkages – to what extent do events in one country have an impact on what happens in other countries? When a number of nations are tightly linked to one another in a particular area, this is referred to as a case of international integration. If, on the other hand, there are very weak links between developments in one country and developments elsewhere, this is referred to as a situation of international fragmentation. The question for managers is how tightly linked nations around the world actually are. Countries might be quite different, yet developments in one nation might significantly influence developments elsewhere. For instance, if interest rates rise in the United States, central bankers in most other countries cannot

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