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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