The Current Business and Economic Environment in Denmark

Subject: D1 Evaluate the impact of changes in the economic environment on a selected business.

Unit 38 Business and the Economic EnvironmentLearner name Assessor nameSameeha Hussain/Antonio ZarroDate unit issuedUnit DeadlineDate unit submitted by student27/01/1419/04/14 Criteria referenceTo achieve the criteria the evidence must show that the learner is able toAsst Task no. Assessor initial date when metPASS CRITERIAP1 Explain the effects of changes in the economic environment on a selected business P2 Identify how government policies impact on a selected business P3 Identify the impact of government spending on a selected businessP4 Explain how both fiscal and monetary policy decisions have affected a selected businessP5 Describe the impact of international factors on a selected business M1 Analyse the implications of

However, the investment was not without risks. There are four types of risks in international business called cross-culture risk, country risk, currency risk and commercial risk. Cross-cultural risk refers to a situation or event where a cultural miscommunication puts some human value at stake. Country risk describes the potentially adverse effects on company operations and profitability holes by developments in the political, legal, and economic environment in a foreign country. Currency risk is the risk of adverse unexpected fluctuations in exchange rates. Commercial risk refers to potential loss or failure from poorly developed or executed business strategies, tactics, or procedures (Boter & Wincent, 2010). Investment in Rulmenti Grei, Timken might face the salient risks of political and economic instability. Romania’s economic growth was slower, inflation was higher, and the labor force was more volatile. Furthermore, there might be a risk of re-nationalization. It is said that economic risk analysis tells corporate leaders the ability of a particular country to pay its debt while political risk analysis tells them whether that country will pay its debt. Political risk measures the stability of individual countries through the

However, Sweden and the United States are also significant trading partners, with the U.S. spending less and losing more jobs. As demand fell so did Sweden’s export contribution to its GDP, thus spiraling Sweden into a recession. Key interest rates began to fall in Sweden same as in the United States due to the global financial meltdown. “As the demand for loans diminish, interest rates tend to decline as well” (Schiller, 2010).

In the late 2000s, major countries all across the world experienced a rapid decline in economic activity comparable to that of the Great Depression. The United States’ real estate market collapsing and “large amounts of mortgage-backed securities and derivatives…[losing] significant value” (Investopedia, LLC.) caused this Great Recession. Three wealthy countries, Japan, Germany and the United States, each experienced a distinct reaction to the economic obstacles that arose during the 2000s and continued into the 2010s, thus the three countries responded in varying ways.

Southeastern Europe was on the very edge of financial disarray, due to the war. This suggests the conspicuous conversation starter: Who will pay? Those economies which are most needing profitable ventures, are the ones slightest fit for thinking of the required money related assets locally or abroad. Along these lines, if the course of financial improvement here were left to the rationale of the free market, there would be no expectation of repairing or enhancing anything. Luckily, we know from the German "financial marvel" after World War II, that there is another approach to

Sweden has maintained a sturdy economy since the early 19th century. They model their economy on a free market system, enabling it to thrive. Sweden was the first country to recover from the great depression in the 1930’s due to this economic model. Their government maintains the thriving economy by instilling policy to make it easier for its people to run profitable businesses. Over the course of history they have developed and honed this economic model and have become very good at it, maintaining its strength by keeping a high surplus for nearly 80 years until the recession of 2008. The world suffered a massive economic blow in 2009 and Sweden was not sheltered from it. Their Gross Domestic Product (GDP) fell 4.9 percent in 2009. Their GDP

The German economy is the largest in Europe and worldwide Germany has the fifth largest economy (“World fact book”, n.d.). It is clear that the German economy holds a key position in the world marketplace. Gross domestic product (GDP) growth is an important consideration for foreign investment as it speaks to the overall health of an economy. GDP growth can be attributed to spending and investments both on and from imports and exports (“What is GDP”, 2005). In 2014 the reported GDP growth rate in Germany was 1.4%, up .9 % from the prior year (“World fact book” n.d.). The Eurozone was deeply affected by a recession stemming from the US and made worse by poor economic conditions in Greece and Spain, among other countries in

The focus of this paper is on post communist transition economies touched by the Euro Zone crisis. The negative influence it has made to economic dynamics was felt by everyone living in Central and Eastern Europe. Despite the actual collapse of some economies in Central and Eastern Europe, lower standards of living in parts of the region, protests and social anxiety, little attention was paid to the crisis and the recession in the post-communist countries that joined the European Union in 2004 and 2007. With their currencies, banking systems and economies on the verge of collapse of the Republic of the Baltic Sea, formerly known as "Baltic Tigers", were affected by the crisis in the form of the sharpest in the whole European Union. The deeper integration of these economies into the global market and full integration into the world economy (and the EU in particular) meant that these countries have become much more vulnerable to the crisis and recession. The foundations of the weakness were in the broad assimilation of neoliberal policies of the economies of Central and Eastern Europe, high dependence on investment and, in particular, in their specific exposure to the operation of international finance.

Investing in emerging markets offer tempting advantages to investors. The volatile economies of countries considered to be in this category have a potential for extraordinary returns. A caveat to investors considering opportunities in emerging markets are the presence of unstable governments, the chance of nationalization, poor property rights protection, and large swings in prices. Emerging markets are far from a sure thing. But, despite high individual risk, emerging markets can reduce portfolio risk. The volatile economies of these countries have such low correlations compared to the domestic market that they actually provide the greatest degree of diversification.

Sectoral Slumps. A slump in the sectors where financial institutions’ loans and investments are concentrated could have an immediate impact on financial system soundness. It deteriorates the quality of financial institutions’ portfolios and profitability margins, and lowers their cash flow and reserves. In transition economies, these problems may also arise due to lack of progress in the restructuring of state-owned enterprises.

They claim that international capital mobility, or, the ability of investors to freely allocate capital around the globe, engenders promise, while simultaneously entailing peril. This paper will attempt to address the arguments of both sides to foster greater comprehension.

Question 1The concept of Business EnvironmentBusiness environment can be understood as the combination of all environmental conditions and influences that are capable of affecting or influencing business activities. According to Anyanwu et al (1996) defines the environment of business as the aggregation of the pattern of all the external and internal conditions and influences that affect the existence, growth and development of the business. Opportunities and threats may be associated with external environment while the strengths and weakness may be associated with internal environment of the business (Audu, 2010a).In this paper, we will compare the business environment of two countries namely: Nigeria and Norway. The reason for choosing these two countries include the fact that both are part of the top ten net oil-exporting nations for which hydrocarbon exports account for more than 40% of total exports. We will compare and contrast the fiscal policy of both countries and the business environment.Overview of Nigeria and NorwayLet give a quick fact summary of these two countries:NigeriaNorwayPopulation169.3 million5.1 millionGDP (PPP)$479.3 billion$280.0 billion6.3% growth0.8% growth7.0% 5-year compound annual growth0.8% 5-year compound annual growth$2,831 per capita$54,947 per capitaUnemployment7.5%3.5%Inflation (CPI)8.5%2.1%FDI Inflow$5.6 billion$9.3 billionBusiness Freedom48.392.1Labor Freedom77.748.2Monetary Freedom70.481.7Government Spending76.143.8Fiscal

This is a research paper on international business in the United Kingdom. This paper will show investors everything about the UK and if they wish to invest in the country. Before any person should invest in any place that is unknown to them, they should conduct research like here before you. The following paper includes research like culture, background, trading, business ethics, recent events. An understanding of this information will help you decide on investing.

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