Thursday, December 20, 2012

INTERNATIONAL BUSINESS ENVIRONMENT



International business environment
Over the period, the global economies have received significant developments that have resulted in the establishment of the significant growth in businesses. Specifically, the past two decades have been characterized by significant development that has ensured that the economies experiences significant levels of sustained growth in the development of the businesses operating in the economies. This development and attributes of sustained growth in businesses has been extremely beneficial because the establishment of regional integration is largely dependent on this depiction (Alma T. Mintu-Wimsatt, 2000). The aspects of regional integration and globalization have emerged as the important attributes that enhances the operations of business activities. In the wake of these realities, the establishment of international business encompasses the cooperation between the global nations and the integration of regional economies. In reality, the conduction of business opportunities in the world market has adopted the consideration of enhancing regional participation and attributes of specialization and division of labor because each nations participating in the global market must ascertains the productivity of the nation. This consideration calls for the establishment of the specialization where the nation specializes in the attribute of producing the commodities that it is best suited to produce. The consideration and the initiative of consideration international business environment consider the aspects and the contributions of significant factors. The establishment of business environment on the global perspective requires the establishment of stability in the government policies, the consideration of political stability and prevalence of economic theories and policies (Coade, 1997). Furthermore, the considerations of cultural and social aspects are also beneficial in the establishment of international business environment. The establishment of international business environment also considers the attributes of technological development because the establishment of technology is an ideal platform for initiating development of business ideas. Development of technological attribute has been considered as ideal environment because it enhances the aspect of innovation and invention of new ideas that leads to the advancement in the business development.

Some of the developments of global business include the attributes of global Forex markets where billions of dollars are transacted on daily basis. This market is one f the financial markets in the global perspective where large sums of money are exchanged and the other consideration of the global market includes the attributes of Euro markets that involve the usage of euro currencies even though the market is conducted outside the European geographical areas (Downing, 2006). The consideration of initiating development of the activities is the result of the development and the consideration of the pervasiveness rate in which the regional growth and development has been initiated. The development of regional integration is one of the significant attributes that has fostered the establishment of international business environment. The establishment of regional integration is extremely critical because it considers the development of regional and national understanding between global nations and this attributes of regional understanding is extremely beneficial for the establishment of ideal business environment. The consideration of business environment has been of immense significance because this leads to the development of the economies and further results in the establishment of the global economy. In this regard, various participants of the global economies have instigated measures that will significantly enhance the establishment of ideal global business environment. Finally, the establishment of ideal international business environment has been enhanced by the consideration of the benefits accredited to the conduction of business (Farok J. Contractor, 2002). Over the period, the interdependency between the global economies has been on the rise and the performance of the global economies largel7y depends on the establishment of international business because the proceeds of international business leads to the enactment of organizational performances thereby leading to the development of the gross domestic products (GDP). Analysis of the reports about the establishment of international business has noted that international business is the term that is used to refer to the collective form of transactions that encompasses private businesses, government transactions, sales and investments. The aspects of logistics and transportations are also included in the considerations of the international business and these factors results in the development of ideal business environment for the global nations. The establishment of ideal business environment is critical because it leads to the enhancement of the performance of the business organizations involved in the aspect of international businesses (Downing, 2006). Analysis in the establishment of international business denotes that the establishment of an ideal business environment does not only consider the attributes of potential business growth but is also considers the establishment of easier access to funding, the enactment of legislations that is more effective and significantly leads to the development of entrepreneurial skills, culture and support for the business incentive. In reality, this depiction is significantly viable and is one of the beneficial attributes of development that enhances the creation of ideal international business environment. Finally, another significant factor for consideration about the establishment of international business environment is the attributes of business growth and development. Over the period, various national economies have initiated measures to help them improve on the aspect of growth because it is purported that growth of business incentive results in the growth of business environment. However, the growth and development of the business environment on the global perspective depends on the consideration of initiating development of the factors that enhances the performance of business incentives. In the wake of the realities, various nations and international organizations have embarked on the capacity of creating ideal business environment (Farok J. Contractor, 2002). This incentive results in the establishment of ideal market where profits are maximized, the organizations operating in the market considers realization of the social responsibility and the operations of the markets encourages the participants to invest in the establishment of critical tools and incentives that leads to the creation of the profitable ventures.

The scope of international business
Analysis of the scope of international business is based on the idea of focusing the resources on the global perspective. The regional resources are collected together and significantly focused to establishment the development of the global market. Normally, the consideration of business activities considers the operations of the firms and organizations in the economy. However, the establishment of international business considers the introduction of the participation of the firms and other organizations and corporations in the economy and their impacts on the global market (Ian Brookes, 2010). The establishment of international business is largely considered as the global business that considers aspect of trade between different countries. The establishment of trade between different nations is conducted with the establishment of trading blocks. Over the period, the aspect of trading blocks has been adopted as the consideration for enhancing the development of the goods and services. Some of the trading blocks that have resulted in the establishment o ideal international environment include ECOWAS, NAFTA and the EU. The establishment of these trading blocks has initiated distinct measures of creating ideal environment for business that includes the attribute of lowering tariffs and taxes. In reality, taxes and tariffs are expenses of the business and result in the establishment higher profit and easier transfer of goods and services.

The scope of international business considers the attributes of international marketing that involves conduction of awareness on the global perspective and this aspect has been confirmed to influence the operations of many forms in the global market (James P. Neelankavil, 2009, Lawrence E. Koslow, 2000). International marketing is extremely beneficial because majority of the regional regulations. Majority of the firms operating in the global market are the multinational corporations with presence in many countries across the globe and headquarters in one country. In this regard, the multinational corporation must undertake the establishment of ideal marketing strategies to ensure that the global population embrace the usage of these goods and services, in addition the consideration of encouraging the performance of international multinational s also considering the contributions of culture and social structure. In this regard, it is evident that the establishment of the aspects of culture and social structure are immensely beneficial in the establishment of ideal business environment (Leslie Hamilton, 2012). Because of this realization, the international organization must consider the attributes of analyzing the attributes of culture and social set up of the national economies in which they integrate because the attributes will enhance development of the national firms and organizations. Significant information served by efficient market is the consideration of timely and accurate information that are passed on the market participants. In addition, market segmentation is also critical and it results in the consideration geographic and gender segmentation. This highlights the target for the global organizations and further results in the creation of success brands in the successful brand market (Michael R. Czinkota, 2010). The interpretation of the reports from independent researchers has denoted that international markets have more potential than local markets and this call for the establishment of ideal business environment to enable adequate exchange of goods and services. The scope of international business is extremely wide and it includes the consideration of foreign exchange, global human resource, international finance and investments and finally, international marketing.  The establishment of foreign exchange is one of the attributes of trade that enhances regional integration and the consideration of this aspects result in the establishment of regional integration between the nations involved in the exchange (Morrison, 2002). One of the considerations that increase the participations of international trade is the consideration of specialization and the aspect of comparative and absolute advantage. The attribute of comparative and absolute advantage calls for the advancement in regional integration and establishment of understanding between the nations involved in the exchange o goods and other commodities. This depiction of business environment is based on the consideration of based on the fact that different nations have the capacity of producing different commodities. In this regard, the differences in technological knowhow, geographical terrains and the climatic conditions lead to the generation of different types of commodities from different localities. This calls for the aspect of trade because the nations must exchange the goods they do not produce with the goods they produce efficiently in their economies (Onkvisit, 2008). The establishment of efficiency is one of the attributes that has enabled development of both regional and national integration. The consideration has been considered effective because it results in the development of critical standards leading to the development of ideal international standards for the conduction of businesses based on the establishment of the business environment.

The development of the needs for the conduction of international business includes the need to achieve higher rates of profits and the limited aspect of home market. Analysis conducted has revealed that the home market sometimes does not offer the incentive for growth for the organizations in the regional economy (Peng, 2010). Another significant consideration for engaging in the international market is the consideration increased competition in the home market that has the effect of reducing profits of the business firm’s and organizations in the economy. Based on the above factors, the development of international business is extremely beneficial but there are ideal factors that must be enhanced to consider reaping significant amount of benefits from the engagement in international business. Based on the factors, the establishment of international business environment is critical for the organization participating in the global business ad this leads to the establishment of the regionasl integration where the countries involved enjoy the privilege of benefiting for the products produced for different markets. Over the period, the global regime has witnessed emergence of significant development in the national economies that attribute to the enhancement in the economies of the nations comprising the global economies (Yu, 1999). In this aspect, the developments have resulted in the establishment of significant development of the economic output of the nations. In the wake of these realities, the global economies have realized the necessity for engaging in the developmental projects and creating ideal business environment for the global business because this consideration will result in the development of the global economy. Some of the attributes that have result in the development of the global economies buy encouraging the establishment of ideal business environment includes the following.

Global economic stability
The establishment of global economic stability has been considered to be an extremely significant aspect because it results in the development of the global economies. The establishment of economic growth is extremely vital because it results in the establishment of ideal business environment thereby leading to the establishment of international business environment (Riad A. Ajami, 2006). The cases of international global crisis and the European financial crisis were extremely detrimental for the establishment of international business environment because of the contribution in reducing the performance of business in various economies and further contributing to the aspect of reduction in the rate of economic growth (Taylor, 2012). In fact, some economies experienced the aspects of decline in growth while some economies experienced stagnation and all these conditions were detrimental to the conduction of international business because the aftermath of the financial crisis resulted in the emergence of inflation. Inflation is detrimental for the performance of the economy and it results in the establishment of poor international business environment and the conditions f inflations should be eliminate din the market by employing the usage of ideal economic corrective policies. Therefore, the establishment of globalization is extremely critical for its contribution in enhancing development of the global economies. It is also beneficial because it leads to the creation of ideal business environment for the international business organizations and corporations.

Political stability
The aspect of political stability is extremely beneficial for the establishment of applicable environment for the conduction of business. Analysis of the reports has revealed that the conduction of business on the international market is based on the consideration of political stability. The depiction of global political situations that disrupted the establishment of global business environment includes the aspects of war between United States vs. Iran, United States vs. Iraq and finally, Israel vs. Palestine. The period during the reign of this political instability was extremely detrimental for the establishment of international business because the business environment was significantly altered with (Wilkinson, 2010). The aspect of political stability has the attribute of encouraging regional integration and the attribute of regional integrations form that basis in which international business is based. In this regard, the establishment of political stability is one of the conditions necessary for the establishment of international business environment because it encourages interaction between different nations thereby encouraging the aspects of comparative and absolute sharing of commodities (Ruth A. Pagell, 1999). The establishment of regional integration is one attribute that is solely enhanced by the aspect of political stability therefore; the attributes of political stability must be upheld by the global administrators because it significantly enhances the development of international business environment.

Cultural and social aspects
Over the period, the aspects of social and cultural aspect have been on the fore front in determining the establishment of international business environment. Analysis conducted on the establishment of various national economies has revealed the attributes of social and cultural effects are significantly different between different nations (Riad A. Ajami, 2006). Therefore, the establishment of the international business environment should consider adopting the type of social attributes and cultural practices that encourages the performance of business. Culture has been cited as a factor with significant influence on the determination of the business establishment because it influences the behavior of the individual. In this regard, culture influences the type of business incentive that is established in the economy and the social practices are critical in determining the performance of the venture. This incentive has proven to be extremely critical in determining the aspect of regional integration. Finally, the choice of cultural practices and social attributes are extremely beneficial for the establishment of business environment on the global perspective.

Conclusion
Over the period, the global perspective has witnessed significant development that has resulted in the development of international business. These developments and attributes of sustained growth in businesses have been extremely beneficial because the establishment of regional integration is largely dependent on this depiction. The aspects of regional integration and globalization have emerged as the important attributes that enhances the operations of business activities. In the wake of these realities, the establishment of international business encompasses the cooperation between the global nations and the integration of regional economies. In reality, the conduction of business opportunities in the world market has adopted the consideration of enhancing regional participation and attributes of specialization and division of labor because each nations participating in the global market must ascertains the productivity of the nation. The aspect of political stability has the attribute of encouraging regional integration and the attribute of regional integrations form that basis in which international business is based. In this regard, the establishment of political stability is one of the conditions necessary for the establishment of international business environment because it encourages interaction between different nations thereby encouraging the aspects of comparative and absolute sharing of commodities. Some of the critical factors that are beneficial in determining the establishment of business environment are considered to be the prevalence of political stability, the establishment of global economic growth and the contributions of cultural and social practices.













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