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Report on Global Business Environment - DOC

   

Added on  2020-06-05

6 Pages1440 Words47 Views
GLOBAL BUSINESSENVIRONMENT

Table of ContentsINTRODUCTION...........................................................................................................................1The risks that is to be considered before making investment decision.......................................1The measures that can be taken to overcome the risks ..............................................................2The positive and negative of investment decision......................................................................2Alternative forms of internationalisation....................................................................................3CONCLUSION................................................................................................................................3REFERENCES ...............................................................................................................................4

INTRODUCTIONThe global business environment can be termed as the environment in distinct sovereigncountries with factors exogenous to the home environment of the organization on the use ofresources and capabilities it influences decision-making (Story and Bovaird, 2014). In the bothexternal and internal environment the global business environment can be classified. The social,political, regulatory , tax etc comes in external environments.In the world's most globalized country recently Ireland replaced Singapore and in order toconduct business it is considered to be in the top 10 countries. In this property Marketo isintended to conduct expansion of FDI in the republic of Ireland. The risks will be analyzedbefore making any decision of investment. The positive and negative areas for the decision thatis been taken by Marketo to invest in Ireland will also be analysed.The risks that is to be considered before making investment decisionThere are four risks that need to be concerned by the Marketo as per the case study beforemarketing investment decision in the republic of Ireland .They are as follows-:Cross-cultural risk – In the human value is put on stake due to miscommunication in culture. Thedecisions-making styles may differ in both these countries that is in Ireland and California. Theethical practice can also be not same in these countries. So, all these things that is culturaldifference, decision-making styles, ethical practices concerns in the cross-cultural risk (Sidaniand Al Ariss, 2014) .Country risks – By development in the factors such as political , legal , economic factors in aforeign country there can be adverse effects on the operation and preferably of the company. Asper the case study the company Marketo can face risk related to harmful or unstable politicalsystem. And also the judiciary system may be not adequate or it may be under developed. In thepolitical system the sources of country risks can be government, political parties and in legalsystem the sources of country risk can be laws and regulation that aims to solve disputes.Currency risk – In the exchange rates there is a risk of adverse unexpected fluctuation. Theforeign taxation and inflation and transfer pricing risks will come under currency risks.Commercial risk – From the poorly developed or executed strategies , tactics or procedures ofbusiness may have loss or failure. There is a risk for Marketo related to poor execution ofstrategy, operational issues, weak partner etc.1

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