Contemporary Global Issues in Business and Tourism

This report discusses the contemporary global issues in business and tourism, including changing order of business, destination marketing, tourism ethics, and poor tourism. It highlights the four fundamental global issues that a company should consider before starting new international business, such as political risks, communication barriers, economic and technological issues, and taxation policies and fluctuations. The report also suggests ways to overcome these challenges.

Contemporary Global
Issues In Business
And Tourism

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK ..............................................................................................................................................3
Discuss four of the fundamental global issues that a company should always consider,
before leaping into new international operations (Business and Management pathway).
Suggest some ways of overcoming these challenges..................................................................3
CONCLUSION ...............................................................................................................................6
REFERENCES................................................................................................................................8

INTRODUCTION
The contemporary global issues in business and tourism is defined as the international
approaches with opening business in international places and handling and managing the
business but the challenges that occurring the the process of handling business and tourism
sector. This includes various types of issues such as changing order of business, destination
marketing, tourism ethics and the poor tourism. Global business and tourism is the largest scale
movement of goods and services and the people in the economy. To make profit in other
countries business needs to adopt the changes according the customer of that country and this
process needs different kinds of barriers and issues same happens in the tourism sector if a
particular country wants to increase the tourism they have to make changes in their hospitality
sector or according to the expectations of the people(Baderschneider and Friedman, 2021) . The
aim of this report is to highlight the fundamental global issues that is faced by the company
before starting new international business.
TASK
Discuss four of the fundamental global issues that a company should always consider,
before leaping into new international operations (Business and Management
pathway). Suggest some ways of overcoming these challenges.
Business in the current environment are getting more and more competitive. Many of the
companies and the businesses are going to be more global as generate business operations in the
international market results in more profits and benefits to the organisation. Operating business
on the global scale makes company to be more competitive on the basis of new sales and also
opens the doors for the new opportunities. Opening business on the world wide helps the
business to generate its operations on more diversified ways as it helps in recruiting the great
talent form the world wide and provides cost reduction. Operating business in the global scale is
not the easy tasks as business had to face many issues and the challenges in the procedure. Its
really difficult to survive on the global business market because there are many already establish
businesses that are conducting their business on that big platform(Christ and Burritt, 2018) .
There are many issues that business is facing as they are stepping into new international market
such as new registration process of the business, make access to the talent that are skilled,
employment of the people, making regulations tax and policies, consideration of the cultural so

that people make their connect with the locals and consider all the economic and political aspects
and the issues that generates by it. There are four common regular things that a business should
consider before competing on the global basis. The factors that makes impact in the business are
political risks, barriers in the communications and the cultures, economical or technological
environment and currency rates and accounting.
In the world where every thing is interconnected such as supply chains, global connections
through internet generates the ability to make business operations on the global scale. Political
risk in the business is describes as the possibility that a business could suffer because of
instability in the political aspect of the business(Gbadamosi, 2019) . Theses includes the
changes in the government, laws in the investment regulations, changes in the international
policies and many more. Instability in the political instability is huge risk for companies that are
operating in international basis. Countries and the markets many times offer such great
opportunities that companies consider this big opportunities to go global . But there are also
bundle of issues that are not defined and corrupted politicians which generally creates problem
for the business. Constant changes in the polities creates shift in policies and regulations. All this
result cause high-interest rates which makes damage in the business investment. There are
political situation that is impacted decision made by a state owned entity which overall affects
the working of the companies. Sometimes nationalism in the economy makes it very difficult for
the business to conduct its working. For example some apps are banned in India and that affects
the company and overall affects its profitability, so political changes in some countries affects
the working of another countries (Penn, and Watermeyer, 2018) . These risks could not be
avoided but the effective management of the political risk is possible. The risk management
needs to conduct the analysis of the early signs such as political situation in a particular country
and measurement of economic conditions with its social impacts. On of the greatest solutions to
face this issue is political risk insurance, this is used by many large exporters, it includes the risk
of non-payments of the loans or non- repayment of loans. The risk can also be mitigated through
evaluation of the risk and make business prepare before the occurring of the risks.
The another issues that companies face in the operating its business in the international
markets are barriers in the communications and the cultures. Healthy communications is very
much beneficial for the international business (Rubtcova and Pavenkov, 2018) . But in many
cases it is worse to make communications across cultures. In order to conduct the business on

international basis there is a need to have communication among colleagues, customers and the
clients. As lack of communications can break huge deals. The most common factor that become
hurdle in the communications is because of cultural differences. The local market is the prime
key to get how much company is performing and will perform in the overseas market. For both
the small and the large businesses that have reach to global level can face the issue of
communications. If the company have to purchase the raw materials from abroad and need to
lead tours internationality. The difference in the cultures and the communications problems can
be the reason of major misunderstanding which cause harm to company's bottom line. An
awareness about the potential issues can make it better to communicate and helps in the growth
of the business internationally. The are many solutions to face this issue or to mitigate challenges
that includes start appreciating cultural values in the business as cultures often communicates
through facial expression and by the tone of the voice on other hand by fulfilling the gap by
attaining some cultural values in the business (Sanchez, 2019) . Through understanding of the
language difference and make that thing cover up effective communications in the local language
this can be done by learning local language or making the staff to learn it properly. Starting new
business internationally is the big challenge and to make business functioning smooth, it is
essential to understand the words, gestures and behaviours of the cultures of the particular place.
For example Tesco in UK faced many changes in the approaches of the customers as the climate
change creates demand for different products and services. People in UK are more towards
healthy diet which leads Tesco to introduce more healthy products in the stores.
Opening new business internationally provides many opportunities for the growth of the
business but with this it also have some problems and hurdles which business have to face in
order to make their functioning smooth and effective. The most common economic issues are
related to the unemployment rates, rates of poverty, growth depends on the availability of the
resources and currency rates. But with the economic there is also a issue of technology as there
are no. of technological advancements in the one country and some are lacking in this criteria.
There is a problems with the companies who are most commonly not aware with the upgraded
technology in the place where company is going to start their business, as by lacking in
technology means company is lacking in the competition which results in the profitability and
stability of the company(Thabit and Jasim, 2019) . High- technology industries in the domestic
markets are more successful than the companies which are using traditional methods of

conducting business. Technology and the economic rates are very helpful in promotional tasks
and business performance. Conducting business on global level allows many benefits and to
great those advantages business need to follow some course of actions because huge operations
demands advancement in the business. To make the right option in accordance with the business
is what business should adopt in order to adopt technological advancements. By knowing the
strength and the weaknesses of the company and by making analysis on the employees of the
business, they should adopt the technology which contributes in the manner that generates
efficiency and effectiveness. Companies needs to analyse the user friendly technological aid
which helps in increasing the productivity of the business. For example because of high
employment rates in the country affects the Tesco performance as the purchasing capability of
the people became weak and its impacts the selling process.
Among all the factors that needs to be consider before making business operations global
there are one important factor that is very useful is tax compliance and the tax of the currency
rates. Business operations internationally needs change in the tax rates and the change in the
accountability. Variations in the tax policy on the goods or business operations can make a
business a bit more challenging. There is a issue in adoption of the registered taxation policies
where the company wants to regulate its business. In the context of business settings and
methods of payments having poor pace with the currency can causes a huge difficulty in
generating profit(Timko, 2021). Fluctuations in the currency rates can causes a major
modifications and changes in the company which might results in the shut down of the business.
The tax rates and the fluctuations in the currency affects majorly in the business and the best
possible ways to overcome or face the losses is to stick to fixed currency with all the parties that
are related to the business such as buyers, suppliers and many more. There are many ways
through which business can make reduction in the risk of tax and fluctuations rates such as
harnessing expertise in the local markets as operations of new business in the international
market requires local knowledge. Gathering knowledge of cross border knowledge,
understanding the rules and policies of the country before starting operations at the particular
place and navigating new legislations rules in the nations. For example , changes in the tax rates
directly impacts the business of Morrisons company because of increment in corporate income
taxes.

CONCLUSION
From the above report it is concluded that the contemporary global issues in the business
and tourism are common in the businesses who starts their business on the international
platforms. These are the challenges that business face in regulating their functioning and
performing their tasks or activities in order top serve customers and make appropriate profits.
This report discuss the four important global issues that company or any particular business
need to consider before making their operations international. The challenges are political risks ,
which describes the rules and the regulations that change by government on the basis of
companies and businesses. Then the another risk includes the hurdle in communications and the
the difference in cultures, which describes as the difference in expectations among the local of
another countries that possess a huge challenge in order to conduct business operations. After
that another challenge is economic and technological issue, some times the employment rates
and ratios are making impact in the running and functioning of business. At last the challenge of
taxation policies and fluctuations discussed which is also need to consider before leaping into
new markets.

REFERENCES
Books and Journals
Baderschneider, J. and Friedman, A.K., 2021. Addressing Modern Slavery in Global Supply
Chains: The Role of Business. In The Historical Roots of Human Trafficking (pp. 101-
119). Springer, Cham.
Christ, K.L. and Burritt, R.L., 2018. Current perceptions on the problem of modern slavery in
business. Business Strategy & Development, 1(2), pp.103-114.
Gbadamosi, A., 2019. Contemporary issues in marketing: Principles and practice. Sage.
Penn, C. and Watermeyer, J., 2018. Communicating across cultures and languages in the health
care setting. London: Palgrave Macmillan.
Rubtcova, M. and Pavenkov, O., 2018, September. The Intercultural Environment As the
Approach to Remove Barriers of Communication. In 254th International Conference on
Management, Economics & Social Science-ICMESS (pp. 29-30).
Sanchez, D.O.M., 2019. Sustainable development challenges and risks of Industry 4.0: A
literature review. 2019 Global IoT Summit (GIoTS), pp.1-6.
Thabit, T.H. and Jasim, Y.A., 2019. The challenges of adopting E-governance in Iraq. Current
Res. J. Soc. Sci. & Human., 2, p.31.
Timko, N., 2021. Viewing Translation Process as an Activity of Overcoming Linguistic and
Cultural Barriers in Communication. Available at SSRN 3953682.