Impact of Global Business Environment on International Trade

ESSAY

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Impact of factors of global economy on international trade.......................................................3
Influence of global business environment on growth of international businesses......................5
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
The global business environment is basically the blend of various factors which operates
on the global level and hence impacts the operations of organizations. Globalization on the other
hand is the process through which large number of organizations interact with each other across
the borders and hence trade. The major purpose of this report is to study the impact of global
business environment on the international trade and business.
This report gives a brief about impact of factors of global economy on international trade
and influence of global business environment on growth of international businesses.
MAIN BODY
Impact of factors of global economy on international trade
Business environment is basically the mixture of all the internal as well as external
factors like employees, needs ad expectations of the customers, clients etc which directly or
indirect impacts the operations of business. In view of this, global business environment is
predominately the environment within various sovereign countries along with the factors which
are exogenous to home environment of organization and thus influences decisions making. Since
the emergence of globalization, the global economy has taken a drastic turn and has transformed
the large number of organization (Meyer and Peng, 2016). Globalization is basically the process
through which products as well as services are traded across the international borders and thus
interaction between people occur from different nation. There are various factors which has
affected the global economy and these factors have a direct impact on growth of the international
trade.
Political factors
The various political factors like tax rate, country stability, government stability etc
affects the growth of Internationale trade in both positive and negative way. The relation
between the trading nations are of utmost importance for the development of the international
trade (Hamilton and Webster, 2018). For example- the politically stable country or nation having
few policies which restricts international trade will eventually expand its trade rapidly. On the
other hand, when the nation is politically unstable then this results to the violence and thus this
causes a great barrier to the growth and development of international trade.