Essay-doing business in emerging market Essay Example | Topics and Well Written Essays - 1500 words

-doing business in emerging market - Essay Example One of the characteristics of business environment in the Asian region is government regulation. This is more significant among big firms and means the organizations’ lack of autonomy. The government outlines guidelines for organizations’ strategies, unlike in the west in which organizations develop strategies that depend on market forces. The regulation ensures a level of uniformity across organizations and is therefore a threat to competitive advantages due to strategic approaches. In addition, the regulations could be sensitive to political needs in the region and not to market forces and could therefore favor some industries than others. A level of volatility in regulation is therefore is therefore likely. Possible protection from unfair competition is however an advantage in the region (Hipsher, 2008). Another distinguishing feature of business environment in the Asian region is weak regulations on human resource. Governments impose fewer â€Å"labor relations requirements, environmental regulations, and information reporting requirements† (Hipsher, 2008, p. 90). Fewer labor relations requirements grants organizations greater freedom and bargaining power in the job market. With significant effects of market forces, organizations can bargain for cheap labor that they can do in jurisdictions with minimum wage requirements. Even though minimum age for employment protects minors from exploitation by employers, this could disadvantage some minors who need work for their survival and the liberal environment offer benefits to both minors and employers who may workers on a short term or irregular bases. Fewer environmental regulations also mean lower operational cost companies can avoid costs on environmental pollution. Corporate social responsibility is therefore the major environ mental regulator on organization and this means that organizations do not need to incur