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Essay / Research Paper Abstract
This 6 page paper looks at some of the issues and problems associated with international business when it is undertaken by state owned enterprises. The paper looks at how and why problem may arise and how assessments in the international business arena should be changed to facilitate inclusion of the government or state influence which may be present. The bibliography cites 11 sources.
Page Count:
6 pages (~225 words per page)
File: TS65_TESOEprob.doc
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Unformatted sample text from the term paper:
national context; supplying goods or services to the citizens of the country that owns it. This has been changing, with governments effectively entering the field of international business through the
strategic changes in the way SOEs are behaving. This increases the complexity of the international business environment, with many of these issues remaining unresolved international business law and practices was
not developed with the idea of the state being an active participant. While it is tempting top look at this as a current issues which has come to the fore
as a result of a changes in the way SOEs are managed, but the reality is this is not a new issue; Vernon (1979, p7) noted the growing importance of
SOEs in the international business environment and the difficulties in the existing business environment. It may be argued that with increased pressures on government budgets and increased pressures to
control costs and reduce taxes, the utilization of SOEs may be seen as a useful source of revenue, as well as providing the government with a strategic advantage. It may
be these two issues that result in a lack of willingness on the part of governments to implement regulations, which in effect will be regulating themselves. It may also be
argued that the existing systems for analysing and assessing the competitive environment of forming short when SOEs are competing, as in traditional models there is consideration of the role played
by government and politics and the influences of the macro environment on the firm, but as Vaughan (2011, p918) states, there can be a significant difficulty in separating state owned
enterprises from the state that owns them. This argument has also put forward by Peng and Health, who argues that in a SOE operating in the commercial environment, there is
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