Impact of Socio-Economic, Technological, Political, and Ecological Factors on Amazon's International Business

This report examines the influence of socio-economic, technological, political, and ecological factors on Amazon's international business decisions and operations. It discusses how socio-economic cultures, technological developments, political environment considerations, and ecological considerations affect Amazon's business in the global market. The report highlights both opportunities and threats for Amazon in each of these areas. Overall, it provides insights into the various factors that shape Amazon's international business strategy and performance.

International Business

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Socio-economic cultures affect Amazon in international business.............................................1
Technological developments affect Amazon international business..........................................2
The political environment considerations affect Amazon international business decisions in
the markets operate.....................................................................................................................3
Ecological considerations taken by Amazon affect their international business decisions in the
markets operate...........................................................................................................................4
CONCLUSION ...............................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
International business refer to all the trade of various goods, services, capital, technology
or knowledge across the globe(Braunerhjelm, and Halldin, 2019). It relates to the various
situations where the production or distribution of goods and services in multinational market. It
helps business to deal with global competition and to become more innovative in the foreign
market. This report is based on Amazon, it is an American multinational technology
company,and its headquarters is in Seattle, Washington. Company mainly focus on e-commerce,
digital streaming, cloud computing, and artificial intelligence. This report include information
about socio economic culture affect on the business of Amazon on international level, also
technological development affect the business of Amazon and its international decision making
process. Further it include the impact of political environment on the internation business
decisions of the Amazon. In the last it include ecological consideration taken by the company
affect their internation business decision making.
MAIN BODY
Socio-economic cultures affect Amazon in international business.
Socio economic culture refer to the external environment of the business or the various
cultural changes that have an affect on its functioning and proficiency level(Chiarvesio, and
Romanello 2018). Change in socio economic culture may impact the business and become threat
for its productivity and growth in international market. In the context of Amazon, analysis of
socio culture trends or changes helps to examine its impact on the company's performance as a
leading information technology good and services and online retail market at the international
level. Socio culture differences can impact the business in both positive and negative manner.
Socio economic culture can have various impact on the business of Amazon that can lead its
business in the competitive environment. Increase in wealth disparity could be a threat for the
business of Amazon. Wealth disparity refer to the increasing level of gap between the rich and
poor people in various countries. This consider as a threat for the company because the potential
strength of disposable income is related to the strength of the macro environment of the retail
industry. This can help the business to analyse disposable income of the people so that they can
find appropriate insight about the strength or weakness of the organisation. Higher level of
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disposable income is more favourable in increase the e commerce and potential of the company
to increase the level of revenues.
Increase in the level of consumerism in the various countries is the positive aspect for the
business of Amazon it provide various opportunities for the business to increase its sell in the
national and international market(Engwall, Pahlberg and Persson, 2018). In addition high level
of consumerism helps the business of IT and e commerce to increase their market in countries
where the citizens are more active in purchase of goods and services from the e commerce
platforms. As the Amazon wants to expand its market in international online retail market, and it
opportunity for the business to gain sustainable growth in the countries with high consumerism.
Customers with online buying habits can help in the better growth and increase the sale of online
product of the company. Increasing online buying habits is the opportunity for the business of
Amazon it helps in creasing the customer base and growth of the business in the market. People
around the world prefer online shopping instead of buying product and services from the stores it
beneficial for the e commerce business because it helps to attract more customers towards the
firm and increase the level of profitability.
Thus, from the above analysis it can be understand that socio economic culture is in the
favour for the international business of Amazon and it can helps increase the customer base for
the company and also provide effective outcomes from the expansion of the business in global
market. There are various opportunities as well as threat for the business of Amazon and its
business can affect from the socio-economic and cultural changes in the market.
Technological developments affect Amazon international business.
Technological development covers innovation and invention in technologies that helps
business to provide customers better satisfaction and growth in the market. It involve changes in
the process of producing product and services, change in distribution channel with the use of
technology, research and development etc. in the context of Amazon technological development
have direct impact on the business of respective organisation(Fassas, Papadamou and Koulis,
2020). Change in the technological factors could impact the business and its productivity in the
market. Also technological factor can helps businesses to gain effective outcome and growth in
the market. Rapid obsolescence of technology can impact the business because it makes
businesses pressurise to develop technology changes in the business and it could affect the
profitability level and increase the level of expenses in the business. However it could be an
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opportunity for the business to attract more customers with the use of latest technology in the
business. Amazon can use this opportunity and make investment on information technology it
can help the company to boost its competitive advantages and can protect business from the new
business. Increasing efficiency of information technology could be an opportunity for the
business of Amazon, it can improve the business and increase the effectiveness in the market.
Information technology could help the business of Amazon to increase the level of effectiveness
to analyse the needs and wants of the customer that can help in better customer satisfaction. It
can enhance the performance of the business in e commerce industry and increase its sell in the
global market.
Amazon also has opportunity in the international market to effectively provide customer
online services that can help in better growth and effectiveness of the business. Also it provide
loyal customer base to the business of Amazon (Jiang, and Holburn, 2018). However increasing
number of cybercrime could be an threat for the business of Amazon, many customers are facing
issues in the cybercrime and it has huge impact on the business of Amazon. It affect the quality
of customer experience and growth in the market. This impact the market image of the business
also it can reduce the customer base of the company.
Thus, from the above desiccation it can be understand that technological development
increase both opportunity and challenges for the business of respective organisation. It could also
impact the decision making process for the international market. Various opportunities for the e
commerce business can helps Amazon to enhance it performance in the international market and
increase the level of sustainability of business. Also various threats can affect its business and
customer base in the market.
The political environment considerations affect Amazon international business decisions in the
markets operate.
Political environment of the country has huge impact on the business and its decision
making in the internation market. It include governments intervenes in the economy and its
impact on the particular industry and its growth in the market (Kaulihowa, and Adjasi, 2018).
Any change in the political environment or the legislation of the government has affect on the
business and its growth. In the context of Amazon, political changes and change in political
activities can impact the business of the company. Political stability of developed country could
be an opportunity for the business and its growth in the market. Political stability can enhance
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the level of proficiency in the business and can increase its growth in international market. Also
support of the government fr e commerce industry could be a opportunity for the business of
Amazon. It can help the business of Amazon to expand its market to the relevant e commerce
businesses (Kaynak,and Lee 2018). Also support of government for the e commerce could
increase the competition level for the company and this could become a threat for its business.
Increase in the business of online retail firms increase the level of competition level. Further,
government in many countries is focused on providing more security to the e commerce
companies so that they can reduce the level of cybercrimes in the country and increase the level
of effectiveness in the business. It can help the business of Amazon to attract the customers
towards the firm and provide better protection level to the online shopping sites.
Thus from the above discussion it can be understand that Amazon has both opportunity
and threats in the political scenario. However company has better opportunity in the business
because of political stabilities and governments' support to the e commerce firms for the better
protection and increase in the level of online business can helps business grow and expand its
business in international market. Also there are various threats for the such as increase in the
level of competition because of increase in online retail businesses and growth of other countries
businesses.
Ecological considerations taken by Amazon affect their international business decisions in the
markets operate.
These factors have impact on the growth and effectiveness of the business in the market.
Also there are various aspects of ecological factors that can increase the efficiency of online
business in the market (Lundan, and Li, 2019). In the context of Amazon, company has
opportunity in order to improve environmental impact with the respect to the raising interest of
the people in the environmental improvement can help in better growth and profitability level.
Increase in sustainable practices can help the business of Amazon to attract its customers towards
the brand and increase profitability level. Also in addition increasing level of government
support to companies which are following the environmental responsibility can improve the level
of effective brand image in the market and increase the growth of sustainability in the market.
Amazon is following social corporate responsibility that has positive impact on the
environmental policies of the business also it enhance the level of effectiveness in the business
and increase the growth and profitability of the business in the market(Polonsky, and Waller
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2018). Rising emphasis on business sustainability is also an opportunity for the business of
respective company it can help business to enhance the effectiveness in the competitive market.
There are higher opportunity areas for the business sustainability. Further, increasing popularity
of people using low carbon lifestyle could be an opportunity for the Amazon to improve its
corporate image in the market(Rogers, Bunn III, and Lerner, 2019). Fulfilment of corporate
social responsibility can increase the level of businesses effectiveness and its growth. All the
affords of the company can increase their competitiveness in the macro environment.
Thus, from the above discussion it can be understand that there are various factors of
ecological consideration that can impact the business and its growth in the market. Also various
opportunities for the business of Amazon can increase efficiency to gain better growth and
proficiency in the market. Increasing level of effective practices can involve growth and
businesses proficiency in the competitive market. Amazon can increase the effectiveness of the
business by analysing various aspect of ecological consideration that can increase brand
awareness in the market and growth in the business.
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CONCLUSION
From the above information it can be conclude that there are various factors in the
international market that can impact the business and its effectiveness. Also there are various
opportunity for the business in socio economic factor that can help its business to gain effective
growth and proficiency in the market. Also there are various threats in socio economic culture
that can impact the business and its effectiveness in the market. In technological development
there are many opportunity for the business of e commerce in the international market that can
impact the business and its effectiveness In the market. Cybercrime in the online businesses has
huge impact on the customers and its effectiveness in the business. Political environment of the
different countries can impact the business and its proficiency in the market. Ecological factors
also has impact on the business on international market. Ecological factors can enhance the level
of proficiency of the business and can increase its growth in the market.
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REFERENCES
Books and Journals
Braunerhjelm, P. and Halldin, T., 2019. Born globals–presence, performance and
prospects. International Business Review, 28(1), pp.60-73.
Chiarvesio, M. and Romanello, R., 2018. Industry 4.0 technologies and internationalization:
Insights from Italian companies. In International Business in the Information and Digital
Age. Emerald Publishing Limited.
Engwall, L., Pahlberg, C. and Persson, O., 2018. The development of IB as a scientific
field. International Business Review, 27(5), pp.1080-1088.
Fassas, A.P., Papadamou, S. and Koulis, A., 2020. Price discovery in bitcoin futures. Research in
International Business and Finance, 52, p.101116.
Jiang, G.F. and Holburn, G.L., 2018. Organizational performance feedback effects and
international expansion. Journal of Business Research, 90, pp.48-58.
Kaulihowa, T. and Adjasi, C., 2018. FDI and welfare dynamics in Africa. Thunderbird
International Business Review, 60(3), pp.313-328.
Kaynak, E. and Lee, K.H. eds., 2018. Global Business: Asia-Pacific Dimensions (Vol. 14).
Routledge.
Lundan, S.M. and Li, J., 2019. Adjusting to and learning from institutional diversity: Toward a
capability-building perspective. Journal of International Business Studies, 50(1), pp.36-
47.
Polonsky, M.J. and Waller, D.S., 2018. Designing and managing a research project: A business
student's guide. Sage publications.
Rogers, W.H., Bunn III, W.B. and Lerner, D., 2019. Analysis of the full economic cost for
Japanese encephalitis under different risk scenarios for business travelers to Asia. Journal
of occupational and environmental medicine, 61(1), pp.16-20.
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