Features of the International Economic Environment

Every country differs in culture which has been there for centuries. The international market is growing rapidly, with more and more multinational organisations entering new markets each day. In this assignment I will evaluate how the difference in cultures affects the performance of international businesses.

Abstract Companies in different countries are operating in different cultural, legal, social and economic environments. As a result,

Political Risk- the unanticipated likelihood that a business’s foreign investment will be constrained by host government’s policy.

Re-location of employment in globalised world. E.g. Call Centre customer convenience across time zones, or pressurised workforce?

As previously identified, there are also “non-legal/extra-governmental” political risks which could bring unexpected upheaval to foreign firms. Macro political risks such as the threat of violence, corruption, war or military coup, political instability and terrorism are all direct threats to foreign investors.

All countries in the world have various political environment and regimes. Political systems differ in terms of the governance, power and the rule of law. A political regime can be defined as structures, activities and processes by which given countries in the world govern themselves. Political systems can be based on either collectivism or individualism. It is essential for business to look at a country’s political environment as a vital criterion in venturing or expanding the business or company to that country. This is because political systems differ and each has its own form of governance that impacts a business in terms of its growth. International companies carry out international manufacture and activity in that they

The political-legal environment is that which consists of government bodies, pressure groups and laws. It is pertinent for companies to keep abreast of and change in political environment because these changes can have dramatic effect. Change in political environment can see legislation introduced that will not make selling or providing a product feasible or somewhat difficult. There are many political factors and laws that can affect business. Pricing, competition, fair trade packaging, labelling, advertising, product safety and minimum wages can all affect business. The

In chapter 4, Singer offers another approach to increase donations that aligns well with the mechanisms of the modern global economy. He states that effective altruists often consider taking a job within a high-paying field, most notably corporate and finance. His reasoning is that the earning more can help you donate more (Singer, 2015, p. 39). By earning money at a faster rate, you can afford to give larger donations to effective charities. It may seem like a simple approach at first, but it is important to consider that the jobs with the highest pay are often found in industries that are worsening the plight of the poor through exploitation and unfair business practices. How much good is actually being done then, if in the process one is actually putting down the people one is attempting to uplift? In other words, earning more to give more might not seem like a moral decision as it drives inequality in the capitalistic society we live in today.

THE POLITICAL ENVIRONMENT: The critical concern Political environment has a very important impact on every business operation no matter what its size, its area of operation. Whether the company is domestic, national, international, large or small political factors of the country it is located in will have an impact on it. And the most crucial & unavoidable realities of international business are that both host and home governments are integral partners. Reflected in its policies and attitudes toward business are a governments idea of how best to promote the national interest, considering its own resources and political philosophy. A government control's and restricts a company's

Making business abroad can be risky, but it can also be profitable for a company as well; thus the necessity to study in deep the country where the company will bring the business to. International companies are faced with many cultural challenges, when doing business across and inside of different borders. Identifying the significant cultural issues involved when evaluating the attractiveness of a particular location as a place for doing business can be crucial for a business. Aspects to consider when studying culture in a new place

Social factors greatly impact the company, as it’s a non-competitive and has to remain in line with the strict differences of cultures around the world. In addition to that, the company will have to communicate its image perspective as a global brand so that customers and employees can associate it with something that joins the world together. Moreover, the social implications as seen in various marketing campaigns a good example, certain countries engage in sport activities such as marathon hence boost

ANSWER: Political risk increases the rate of return required to invest in foreign projects. Some foreign projects would have been feasible if there was no political risk, but will not be feasible because of political risk.

In this project, a feasibility study for an organization that aspires to enter the global market is conducted. In this paper is an overview of the organization and the objectives with which the feasibility study aims to achieve. The business environment of the country to which the corporation aspires to enter as the global market is analyzed to ascertain its suitability. In this paper also are the challenges and opportunities for the organization that are available in the global market that is analyzed. Basically, this paper analyzes the viability of the corporation entering the specified global market and thereafter a decision on whether or not to enter the global market is made based on the findings of the analysis. It is worth noting that the information for the organization used in this project is fictitious.

The global economic environment has become more interlinked in the 21st century than ever before because more business enterprises have realized the importance of having trade relations within and outside their countries. Several prevailing factors that have a direct impact on the global economy influence greatly how the world business environment is likely to be at any given time (Harrison, 2010). This paper will examine the influence of factors on world economy. It will also examine how these factors shape global economic environment.

When it comes to evaluating whether or not a country, individual, or business should invest their capital in another country, they should take into account the Political Risks associated with that investment. These can range from a country potentially taking part in a war, to many different types of bribery and extortion efforts by the countries government.