There are many aspects that affect the way in social, culture, economic, legal and political conditions can greatly affect the way globalized businesses are managed. Doing business abroad presents enormous challenges simply because countries and societies are so incredibly different. There is a need to appreciate not only that these differences exist, but also to appreciate how these differences impact doing business abroad. Doing business abroad requires flexibility to conform to the value systems and norms of that country. Adaptation can embrace all aspects of an international business's operations in a foreign country, from the way deals are negotiated, to the appropriate incentive pay systems, to the organization structure, product names, and relations between management and labor. What works in one country most likely will not work in another.

Social differences play a key part in the way business is conducted abroad. Most clearly we must take into...