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BUS 201: Introduction to Global Business

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Macquarie University

   

Introduction to Global Business (BUS 201)

   

Added on  2021-09-14

BUS 201: Introduction to Global Business

   

Macquarie University

   

Introduction to Global Business (BUS 201)

   Added on 2021-09-14

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GLOBAL BUSINESS 1
GLOBAL BUSINESS
by Student’s Name
Code + Course Name
Professor’s Name
University Name
City, State
Date
BUS 201: Introduction to Global Business_1
GLOBAL BUSINESS 2
Introduction
Various factors hold businesses firmly. Among the elements are the social based that
either create or break any business ideas that are done both locally and internationally. The social
factors are a component of the pestel factors (Yüksel, 2012). As a responsible individual in
charge of a large manufacturing firm based in Australia that needs to acquire another subsidiary
office in different nations, then the social factors need to be addressed in depth. The paper is
addressing the social factors such as the different population growth rates, the lifestyle, cultural
barriers, age distribution and the health consciousness of the host nations. For the developed
nation, the paper focuses on Canada whereas Mexico is the developing nation that is being
analysed.
Social factors
The decision based on the population growth rate is essential. The population growth rate
for Canada differs from that of Mexico as it were. The data below shows the population growth
trends in both nations (Lib.sfu.ca, 2019). Canada has a reduced population growth rate compared
to Mexico. The reason for the scenario is that Canada has gone through the natural planning
methods required compared to Mexico that is yet to implement the same strategies soon. The
decision to host the Australian manufacturing firm is based on the population as it would offer
employment opportunities. The statement is true because business revolves around people and
the ability to provide them with employment. The business decision to raise the firm in Canada is
advantageous since it has a manageable population. On the other hand, hosting the firm in
Mexico is beneficial because of the high population meaning more sales and more revenue for
the manufacturing firm. The data of the population growth differences are shown as below:
BUS 201: Introduction to Global Business_2
GLOBAL BUSINESS 3
The second social factor is the lifestyle of both economies. The Australian manufacturing
firm that is to be hosted in both economies would produce their products differently regarding
the lifestyle of the population. The lifestyle in Canada and that of Mexico differ greatly. Canada
ranks highly in the use of cannabis, amphetamine, drinks, roller coasters, and their life
satisfaction indices (Featherstone, 1987). Therefore, the Australian manufacturing firm would
have to produce more of their output in Canada compared to Mexico because of their increased
levels of life satisfaction. The business decision made for Canada would generate more for the
firm and less while providing the same services in Mexico. Comparing both economies regarding
population size is not enough to show that Mexico would have a higher consumption of the
products generated by the Australian manufacturing firm than Canada.
BUS 201: Introduction to Global Business_3

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