Globalisation and its impact on international companies and the effect of national policy on multinational technology companies like Apple Inc

This article discusses the impact of globalisation on international companies and how national policies can affect multinational technology companies like Apple Inc. It covers topics such as market entry strategies, organisational culture, and tariffs.

Running head: CURRENT EVENT AND BUSINESS ENVIRONMENTS
CURRENT EVENT AND BUSINESS ENVIRONMENTS
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Name of the university:
Author Note:

1CURRENT EVENT AND BUSINESS ENVIRONMENTS
Question 1. How the globalisation factors have changed the operation processes of the
international companies?
After the second world war the countries of the world had faced an immense change in
the process of doing business. With the advancement of technology, the companies have become
more interested in entering the global market. The globalization factors have affected the
economy of the countries, society, business life and international environment in various ways
and changed their operations. The business after globalisation has become more focussed in the
meeting all the demands of the customers rather than enhancing their own profit mechanisms.
Therefore, the quality of products and services have become the segment based on which the
companies are developing their own brand.
Globalisation has become prominent through the rise of competition level in the global
economy. The more business organisations are producing, the more tough becomes the brand
sustenance. Initially, the companies stated their international business by either exporting their
goods to the other countries but now the businesses are taking advantages of the policies of the
highly welcoming nations. The process of entering a new market has become easier and the
forms are choosing various modes of market entry. This includes acquisition, joint venture,
merger and many other options. Through globalisation the companies are getting more options to
enter the markets depending upon the economic situation, political situation, technological
growth, environmental support and regulations of that country. Therefore, the nations which
have stable government, growing economy and supportive technology, the companies are
choosing those markets only. Hence the companies are trying to enter those markets where they
can get more diverse and cheap labours economic and political support and a huge emerging
market.

2CURRENT EVENT AND BUSINESS ENVIRONMENTS
This is similarly effective in case of the countries with compatible organisation cultures. The
Western cultures is completely different from that of the Asian countries like India, China and
Indonesia. Therefore, the companies following UK or USA culture tend to avoid the
organisational culture of these markets. By the mode of entering in that market these companies
are preferably opening their branches in the markets where the organisational culture is more or
less same. The main aims of the companies after globalisation has become to find out the market
where they can produce goods with less cost and increase their market share. For employing the
local cheap labours for cost cutting and managing them effectively is a challenge for the
multinational companies. Moreover, without knowing the culture of that market, the companies
will not be able to analyse the customer’s and develop their production accordingly.
This issue is directly connected with the internal environment of the organisation. These internal
factors however connected with the market entry strategy of the firms. This is due to the fact that
when they will initiate a partnership with another organisation of different culture the
compatibility and understanding must be similar. Otherwise the partnership will not last for long
and the companies will certainly fail.
Question 2. How can a change of national policy affect the multinational technology
company like Apple Inc?
Due to globalisation, the economy of one country has been directly dependant upon the
other countries. In this case, all the developing as well as developed countries of the world has
been affected by the new policy of the American President, Donald Trump. Donald Trump’s new
tariffs can cause trade war and lead to lose the ground in on the most profitable market like the

3CURRENT EVENT AND BUSINESS ENVIRONMENTS
European markets and more specifically the market of China. This issue has covered a wide
variety of products of Apple Inc, the Global Technology giant of the world. This initiative taken
by the president has pulled the largest technology company of the nation to feel insecure in the
trade war. The proposed tariff by Donald Trump on 200-billion-dollar worth of Chinese goods
can affect the company’s products like Airport, Apple pencil and Apple watch. This will also
include the cell of Home pod, Mac Mini, adaptors and chargers leading to a huge loss of the
company in the Chinese Market. This will lead to the sufferings of consumers as they will have
to pay more for the Apple products. The president of USA wants that the company must make
the products inside the US and avoid the terrace on the Chinese import.
Despite the fact that the World Trade Organisation has put a ban on the countries for
increasing tariffs on the import goods by Trump clearly stated that this tariff hike was important
for both the companies and as well as the market of the USA. He has justified the importance of
this tariff for the growth of the American economy and it will be necessary for the national
security of the country. In response to this policy of Donald Trump the Chinese government has
also put the same number of tariffs on the US goods imported in China.
According to the researchers the policy taken by the US President will definitely the US
based companies as well as the other foreign organisations. The stability of economy and
regulations attract the foreign companies to enter the market of a nation and operate successfully.
This change in economic regulation will discourage the foreign companies as well as the locals.
This is due to the fact that many of them depend upon the imports in Chinese Market and if the
tariff increases, they will lose the customer base on the ground of higher price. Therefore, it can
be stated that the change in the policies can affect the external environment of the companies
which can threaten the growth process. This change in the economic policy of the largest

4CURRENT EVENT AND BUSINESS ENVIRONMENTS
economy of the world has affected the internal structure of the US based companies operating in
China. This will lead to either leave the country or cut cost by reducing the human resource
which is an important part of the internal environment of a company.