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Economic, Political and Cultural Impact on China

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Added on  2020-05-16

Economic, Political and Cultural Impact on China

   Added on 2020-05-16

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Running head: INTERNATIONAL BUSINESSInternational BusinessName of the Student:Name of the University:Author Note:
Economic, Political and Cultural Impact on China_1
1INTERNATIONAL BUSINESS1. External Environmental Issues faced by PETRONAS: PESTLE AnalysisWhile expanding the business in three major countries like China, UAE, and USA,PETRONAS has faced the considerable challenges from the external environment. In this sectionof the study, these issues would be identified by identifying the influence from the political,cultural, and economic environment. The analysis is discussed below:Economic, Political and Cultural ImpactCountryEconomic InfluencePolitical InfluenceCultural InfluenceChinaThe increasing rate of the oilprices is quite disadvantageous forthe oil and gas companies (Milton-Edwards 2017). In fact, it has been observed thatthe changing oil prices in Chinaare affecting the foreign businessmarketers during the businessexpansion (Gilpin 2016). PETRONAS is a developingbusiness that ensures growthwithin a shorter period of time(Petronas.com.my 2017). It wouldbe quite challenging forPETRONAS to expand thebusiness in China.The political influencesare mostly visible in theincreasing rate of the oilprices (Halpern 2015).The changes in thepolitical ruling party canalso create the instabilityin the country. Thecurrent instability politicalscenario in China is oneof the major reasons forincreasing prices of oiland gas products (Gilpin2016). Therefore, PETRONASmay face the politicalturmoil in Asiancountries. PETRONAS is aMalaysian company,which deals with thediverse cultures. Thecultural diversity isquite higher in thecountry that has madethe company quiteflexible in dealing withthe diverse populations(Beeson 2014). Thecompany is thus quiteflexible in dealing withthe Asian cultures inChina. Hence, the culturalinfluence is not muchsevere forPETRONAS. MiddleEastThe economic influence on the oiland petroleum companies in UAEensures the stronghold, whichdepicts the opportunisticconditions for the foreign business(Gilpin 2016). This economic investment factorswould be much opportune forPETRONAS in expandingbusiness in this region. The government policiesin a country like UAE arequite favorable for the oiland petroleum companies(Halpern 2015). However,the political instability,terrorism attacks, andviolence are some of theconsiderable risks for theforeign businessThe cultural scenario inUAE can becomechallenging for theforeign businessmarketers (Beeson2014). However, thehigh concerns for theirreligious aspects couldbecome an area ofconcern for the foreign
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2INTERNATIONAL BUSINESSmarketers. Therefore, it can beimplied that in spite ofbeing politicallyopportunistic scenario,PETRONAS may face therisks of politicalinstability and terrorism. business likePETRONAS. USAThe increasing amount in thebusiness investments, substantialdecrease, and consumerexpenditure would be theconsiderable source of income(Wild, Wild and Han 2014). PETRONAS has the largeropportunities in USA to expandthe business. However, theemergence of the global recessionwould possibly affect theeconomic value of the oil andpetroleum products. The current changes in thepolitical systems of USare posing morechallenges for the foreignbusinesses.PETRONAS thus requiresconcentrating on thegovernment policies andlegal norms beforeexpanding the businessentity in USA. The aging population ismuch higher in USA. Itmight lead the foreignbusiness towards thelabor shortage (Gilpin2016). In addition tothis, the increasingillegal racialintolerance is muchriskier for theMalaysian companyPETRONAS. Table 1: Economic, Political, and Cultural Influence on PETRONAS in ASIA, Middle East,and USA(Source: Gilpin 2016)The above discussion suggests that in China, PETRONAS can face most considerablerisks in the economic parameter. The emerging economic crisis is quite challenging for thebusiness growth. In UAE, the political instability and religion concerns may affect the businessfunctions of PETRONAS. The racial intolerance and changing government policies in USA arequite unfavorable for the long term sustainability of PETRONAS after the expansion.
Economic, Political and Cultural Impact on China_3

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