The Global Business Environment

A – The social, political and economic context 1) The global business environment a. Globalization – refers to the growing interdependence of countries worldwide through: ↑ trade ↑ capital flows ∞ rapid diffusion of technology Features of Globalization (SOILED) S – Savings or cost reduction through developments in communications and transport O – Overseas transactions are available among individuals and groups I – Increase importance of global...

Read More

Emerging Economies

This means the stages wherein countries develop from agriculture moves towards manufacturing, towards services and resulted to demand from people and makes the economy wealthy to supply. Examples of Emerging countries are Brazil, Russian, India and China (B R I C) These are the topics about emerging economies: Absolute advantage and comparative advantage  Competitive advantage Influencing the diamond Offsourcing and outsourcing Newly...

Read More

Economic Context

Economic Context This discusses the free trade vs protectionism; economic liberalization vs economic nationalism. In the global business environment a number of regional trading arrangements exist. There are: Free trade areas Custom Unions Economic Unions Free Trade – encourages easy movement of goods, services labour and capital between different countries. This means, no need to pay quotas, tariffs, subsidies and discriminatory taxation. Advantages...

Read More

International Environmental Influences

International Environmental Influences The global business environment can be analyzed against number of factors, such as PEST (Political, Economic, socio/cultural and technological). Political Political factors are how and to what degree a government intervenes in the economy. There are two types of risk in political factors: · Political risk – a risk that a company incurs losses due to non-market factors, which are related to government...

Read More

The Global Business Environment

The Global Business Environment Globalisation – refers to the growing interdependence of countries worldwide through: • ↑ trade • ↑ capital flows • ∞ rapid diffusion of technology Features of Globalisation (Code: SOILED) S – Savings or cost reduction through developments in communications and transport O – Overseas transactions are available among individuals and groups I – Increase importance of global economy policy relative to domestic...

Read More

The Social, Political and Economic Context

This includes the wider environment that organizations operate it; its global economy and the nations which participate in it. Six Topics on Social, Political and Economic Context (Code: GET ICE) 1) Global Business Environment 2) Economic Context 3) Types of Organization 4) International environmental influences 5) Culture and the global organization 6) Emerging Countr...

Read More