INTERNATIONAL BUSINESS ENVIRONMENT
European international business environment
The periods of the recent past has been characterized by significant attributes of development that has resulted in the establishment of new markets. With the consideration of this growth, the international boundaries have been integrated thereby leading to the enhancement of international trade and cooperation between various nations. The revelation has stated that markets have become global for some of the goods and services. Analysis of the global trade data has shown that the aspects of the global trade have expanded more than 6 times since the period of 1950 (European Commission, 2004). With expansion to the external territories, the business ventures have been expanded to consider the increase in the external territories. During the aspect of expanding the national territories, the ventures of international territories consider the aspects of increased independence and interdependence between nations. Over the period, the expansion into the international markets is normally faced with the consideration of ideal challenges because of the changes in the business environment. Some of the existing aspect of business environment that constitute international business environment includes government policies, free movement of capital, competition policies, regional policies and social policies. In the wake of the above depiction it is beneficial to consider the attributes of the significant changes in business environment with the expansion into the global perspective. With regard to the establishment of the business environment, the European market offered ideal features that are crucial for the conduction of the business incentives (Buckley & Ghauri, 1999). The consideration of BP for example, has been faced with the attributes of growth because the existing policies are ideal for the attributes of trade and they enhance performance of the business and Multinational Corporation in the economy.
With the attribute of continued globalization, the European governments have realized that the establishment of ideal environment will enhance participation of both internal and external business incentive to initiate crucial, development. In this regard, the consideration of developing crucial policies for trade is enhanced through the consideration of then joint policy initiative that is involved with the aspect of drafting the reining policies for development. Over the period, the EU has been identified as largest market and this has prompted significant increase in the attributes of trade. Upon this realization, the EU led the delegation aimed at enhancing the usage of ideal policies to enhance conduction of business both from within and with other external factors and this incentive calls for the aspect of enhancing the existing polices (Clayton, 2002, Streeck & Schmitter, 1991). The European Union has enacted the aspect of external trade interests and negotiations with the bilateral partners including both regional and multilateral agreements with the third world countries. The union has stipulated series of policies to govern both internal and external trade and this also helps in the aspect of regulating the prices of the commodities. The government has enacted measures to ensure that malpractices in the economy are not warranted and the existing agreements have regulations for countering the aspects of unfair practices. Over the period, the establishment of world trade organization (WTO) has continued to over see the practices that concern the performance of the market and European has opted to be a member of the organization t help in the provision of ideal environment of trade. In this regard, the EU has crucial policies like the formation of customs union with common external tariffs and common external trade policies (Clayton, 2002, Tenbucken, 2002). Some of the leading policies enacted by the European government are the environmental policies that must be observed by the multinational companies engaged in operation within the European nations. The social policies adopted also have significant results for trade in the territory these attributes leads to the consideration of free movement of goods and other commodities.
The competition policy
Completion is an aspect in the conduction of business that results in the quest for the market share. Over the period, some companies have adopted the usage of detrimental consideration to enhance an advantage over the other companies in the same industry and this consideration has prompted the regulators of the European union to implement competition polices with the aim of restoring order and corporations in the market. Therefore, competition in the European Union involves the concept of applying rules and observing the provisions of the rules. Some of the provisions of the policy states that:-
Low price for all
The aspect of setting up low prices for all the participants in the market is an important aspect because it enhances the participation of the business, it leads to development of he economy and further leads to the satisfaction of the consumers. At lower prices, various companies will produce high quantities and attain economies of scale and this is ideal for economic earnings.
The consideration of the completion policy is crucial because it leads to the development of high quality of the production. The policy seeks to empower the market participants to enhance quality because this will enhance increased completion which is intern crucial for the establishment of the market share.
Innovation and choice
Provision of quality services and commodities is one of the recommendations of the competitor policy. This realization calls for the activities in the market participants to identify crucial methods of enhancing performance and development of their corporations and this incentive involves research and innovation thereby leading to the attribute of new product generation.
Over the period, BP has continued to be one of the largest participants in the market and it is listed as the largest vertically integrated oil and Gas Company in the world and the companies operations largely includes the attributes of exploration and production of both crude oil and gas. In the aspects of production it is crucla for the company to conduct the aspects of marketing natural gas, natural gas liquids and power (Richardson, 2001). The location of the company and its headquarters is in London. Over the periods the company has continued to operate across the global nations because of the ideal polices that have been implemented in the European market. The aspects of development of the nations in the European nation have prompted the consideration of developing ideal marketing and operational attributes. In view of this establishment, some of the leading aspects of development for the organization have been highlighted through the analysis of the strengths and weaknesses of BP oil.
Internal strengths of the market and BP participation
One of the leading aspects that have enhanced operations and performance are the attributes of dominant market position across the globe and the conduction of vertical integrated operations and finally the consideration of wide geographical presences (Webster, 1998). The analysis of the internal market has also revealed some series of weaknesses that have enhanced the decline in crude oil and natural gas production and the controversies and criticisms facing the country are the ideal aspects that have continued to threaten the operation of the internal aspects of the market.
The consideration of the external markets and its influence in development of policies
The development of the external environments is composed of polices that are crucial for the performance and conduction of business development. Certainly, the attributes of policy enactment is beneficial for the nations and the entire markets and this results in the consideration of employing the attributes of development thereby leading to the increase in the operations thereby leading to the increase in the international business.
Conduction of analysis in the external environment is extremely crucial because it leads to the establishment of the factors that have been enhanced by the formation of policies and that are crucial for the consideration of development of the attributes of development. The external factors consider the usage f the policies that the European Union has established to aid the attributes of trade within the economy and with the outside world (Pollack & Shaffer, 2001). Trade is vital for the development of the economy because it enhances the aspect of exchange with the global nations. This consideration results in the consideration of enhancing the attributes of foreign earnings and it also encourages the realization of global peace and consideration global developmental attributes.
Amongst the leading concerns for the governmental policies initiated by the European Union includes the attributes of increasing demand for natural gas in North America. Over the period, the establishment of the reigning peace with other nations has resulted in the consideration of enhanced business performance. The European Union has been on the fore front on the quest to establish peace with the various nations thereby leading to the establishment of business opportunities for the nations and this consideration has helped enhanced the operations of BP in the external environments (Pollack, 1997). The establishment of ideal international business is extremely beneficial for the elements of development and establishment of business opportunities. In this regard, the attributes of the rising demand for refined products and petrochemicals in China is another incentive that highlights the consideration of the organization towards adoption of ideal policies. These polices have been considered to be the determining factors of development because they helped to increase the participation of various multinational companies across the geographical borders. Certainly, the establishment of the multinational company BP is an example of how the policies can help influence those aspects of operation because polices enacted has helped ensure the operations of the company are significantly governed.
Other attributes of polices enacted that have resulted in the generation of increased performance are as a result of the key developmental strategies employed by the European nations. There are asset of environmental polices enacted to regulate the operations of the global companies and further ensure that environmental degradation is adequately reduced. These aspects of environmental polices have ensured oil and gas exploration projects and further enhanced the attributes of investment in other alternative energies (Pijenburg, 1996). In reality, the exploration and refining of oil and natural gas can be detrimental for the lives of the citizens in the European Union and the governments must ensure that ideal policies are enacted to govern the operations of these companies. The enactment of these polices are aimed at ensuring increased processing of the final products realized from the exploration. Therefore, the companies must certify the required regulations and polices to operate in the EU.
Environmental regulation policies enacted in the European Union has been of immense benefit because it has helped in the regulation of the companies because it ensures that companies that are not able to certify the given environmental conditions are forced out of business. The implication of these environmental regulation polices is crucial because it highlights one some ft he policies that result in the attributes of development and depravities resulting from the aspects policy enactment. The other factor that has also been of significant influence is the aspects of reigning instability in some of the oil producing regions. The EU has initiated ideal polices to ensure that correctives measures are put in place to overlook the attributes of development and the consideration of development of the nations. Certainly, polices enacted by the European Union has been extremely critical in enhancing performance and safety of the European citizens (McCormick, 2001). In this regard, regulation polices are immensely beneficial, for the aspects of trade. in the wake of the rising competition form other companies in the market, there is the need for the considers to be protected and this is done through the attribute of setting minimum prices for all the participants and this forces the competing firms and corporation to compete on the basis of quality provision. This incentive is ideal and has enhanced increased economic development because the development of the competing firms leads to the development of economies of scale and further results in the consideration of increased economic earnings.
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