INTERNATIONAL PROJECT MANAGEMENT

International Project Management

International Project Management

Introduction

Working in a foreign country requires a great deal of preparation and assessment of all possible differences that business is about to encounter. As was already said major role is deciding whether of not the project will be successful is comprehending macro environment of a new country. Studying its economical condition, security levels and infrastructure system is a core competence of a company who wants to be more successful that its competitors. The international development project presents particular issues for the project managers due to natural characteristics. This paper explains major environmental factors that impact international project managenment with a view to understand their nature from the perspective of the project managers who are expected to manage international development projects. The government may often influence some of these elements.

Discussion

Political factors

Political factors concern to problems at the national level and regional level including inconsistency in policies, laws as well as rules, and political instability. From development project's perspective, these factors add to an environment of doubt on return of capital investment. For instance, political uncertainty and lack of transparency in policy decisions affected the growth of cellular network of RPG Cellular project in India (Bastani, 1988). In most of the examples, the chance of occurrence of political factor is little but its impact is comparatively large. Political instability coupled with underdeveloped institutions and lack of consciousness in the people might result in recurrent change of governments or excite abrupt change of policies adversely affecting the successful attainment of development project objectives. Quite a few associated factors that might prompt political challenge to the project are: Political takeover or military coup:

War or revolution

Allegations of corruption causing government resignation, and

Nationalization of assets with or without adequate compensation.

Legal factors

Legal factors concern to surprising changes in government policies relevant to laws plus regulations and currency conversion; absence of suitable regulatory systems; rates plus methods of taxation including customs, royalties, convertibility of currency; role of local courts in arbitration; and the methods by which electricity tariffs are set and approved. Researchers attribute the legal challenge to the change in any legislation or agreement set by the government related to the following issues: pricing, taxation, royalties, ownership, arbitration, convertibility, corporate law, accounting rules, funds remittances, process regulation, and environment issue.

Cultural Factor

In the context of international development projects, cultural problem is the smallest amount known ...