International Business : Assignment
Added on 2021-06-14
8 Pages2168 Words27 Views
Environmental Science
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Running head: INTERNATIONAL BUSINESSInternational BusinessName of the Student:Name of the University:Author’s Note:
1INTERNATIONAL BUSINESSInternational business has emerged as the recent trend in the business world and it isgenerally seen that most of the business organizations in the present times take the help ofthis particular style of business “not only to reach out to a larger number of people but also tobring about their overall growth as well as development” (Srdjevic, Bajcetic and Srdjevic2012). This particular trend can be seen as a reflection of the changing nature of thecontemporary business world which in turn has been brought about by the “recent changes inthe fields of technology as well as innovations and also on the score of globalization”(Zalengera et al. 2014). However, before the various business organizations can embark onthe process of internationalization there are certain factors which they need to take intoconsideration (Sebestova and Nowáková 2013). The most important tool which is used by thevarious business organizations to analyze the business environment in which are operationalis the tool of PESTLE analysis (Sebestova and Nowáková 2013). This essay will discussabout this particular framework and will try to show that the economic factor is one of themost important factors which affect the business of a particular business organization in aninternational setting.The PESTLE analysis is a framework which is being used by the various businessorganizations in the present times to analyze the macro as well as the micro environment inwhich they operate (Bartusková and Kresta 2015). This particular framework gives thevarious business organizations an idea about the key competencies as well as the weaknessesof the environmental conditions in which they are operational (Khan, Alam and Alam 2015).Furthermore, this particular framework also provides an idea to the various businessorganizations about the key opportunities as well as threats which galore their businessorganizations. Therefore, it would be apt to say that the framework under consideration hasemerged as one of the most important ones in the recent times and helps the various businessorganizations in a significant manner in the formulation as well as the implementation of new
2INTERNATIONAL BUSINESSstrategies with the view to mitigate the risks and the threats faced by them. Thus, thisparticular framework becomes of paramount importance for the business organizations whichare following the various precepts of internationalization (Khan, Alam and Alam 2015). In the opinion of many people not all the components of the framework underconsideration here are of equal importance (Utami and Lantu 2014). In the recent times it isgenerally seen that the economic factor has gained much more prominence than the otherfactors and it is a reflection of this particular factor that the various business organizationswhich follow the policy of internalization take this particular factor into special consideration(Butryn et al. 2015). It is significant to note that since the ancient times the economic factorhas played a significant role in the business world and therefore it is seen that a sound andstrong economic condition is one of the most basic requirements of the various businessorganizations even in the present times. Money or monetary gains is one of the primaryreasons which not only influences the various business organizations but also motivates theconcerned business organization to perform in a much better manner. Thus, it is seen that thevarious business organizations in the present before expanding their business in any otherforeign location one of the primary factors of consideration for the concerned businessorganization is the economy of the nation under consideration and the net profit percentagewhich the concerned business organization would be able to gain by expanding into thatparticular nation. Furthermore, in the opinion of many experts the prospects of a particularbusiness organization is directly related to the economic factor or the economic condition inwhich it is operational (Butryn et al. 2015). The “Global Strategic Rivalry Theory”propounded by the famous economists “Paul Krugman and Kelvin Lancaster” also statethat the economic factor is one of the most important ones among the various factors whichaffect the business process of a particular business organization (Belniak 2015). Furthermore,the economists are also of the opinion that the factor of economic advantage is often utilized
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