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Introduction to Global business PDF

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Added on  2021-06-17

Introduction to Global business PDF

   Added on 2021-06-17

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Running head: INTRODUCTION TO GLOBAL BUSINESSIntroduction to Global BusinessName of the Student:Name of the University:Author note:
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INTRODUCTION TO GLOBAL BUSINESS1Introduction This paper is going to elaborate on the necessity of analyzing the micro environmentalfactors and the microenvironment in regards of the global business. The paper has shed lighton the four primary factors i.e., the political, legal, social, technological, environmental andeconomic factors that assist the growth of the business in the global market. They describe aframework of the micro environmental policies (PESTLE) that could govern the businesses inorder to carry on the business effectively in the business market. All these factor can alsoassist in the scanning of the environmental components of the strategic management and theyare all important to be analyzed by every organization as they have the potential to affect thebusiness both positively and negatively (Utami and Lantu 2014). However, the paper willidentify the one most relevant macro environmental factor for an international business whilechoosing to internationalize into the developing country. The paper will also focus ondescribing some international business concepts and theories that could be used in order tohelp to justify the explanation of the paper. The major aim of this paper is to elaborate on abrief discussion about the importance of political factors in the process of decision making aswell as the success of the firms. Discussion Political factors is concern about the stability of the political environment and theattitudes of the political parties and the movements (Quintelier and Van Deth 2014). It is tobe mentioned that the political factors of any nation have the most influence on the overallbusiness in each of the organization present there. They manifest in the government influenceon the government involvement, tax policies in the trading agreements (Williams 2018). Thepolitical factors are automatically entwined with the legal factors like that of the internationaltrade regulation, restrictions, consumer protections, monopolies, mergers’ rules, national
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INTRODUCTION TO GLOBAL BUSINESS2employment laws etc. The only difference in between the legal and the political is that thelegal factors are the ones that have become regulations and laws that are bound to beaddressed by every organization (Burley 2017). On the other hand, the political factors refersto the approaches and the attitudes. The political factors might also represent the restrictions,influences or the opportunities. However, unlike the legal factors, the political factors are notmandatory and they are bound to be compiled of. The political factors are capable enough tointroduce the risk factors that may cause the business to suffer massive losses and tocompromise over the profit stream (Jackson 2018). It is the most important of all as it is afact that it does not remain constant. These factors remains changing with the change in theexisting policies and the existing governments, as they the changes in them change theactions at every level, right from local to federal. Hence, it is very necessary for all thecompanies to plan for following the liability in the regulations and the policies of thegovernment in order to maintain a stable business environment. In fact, it is also to note thatall the other factors of the macro environment, such as the social, environmental, economic,and technological and not to mention the legal issues are all interdependent on the change inthe governmental policies. For example, the economic factors such as the rate of interests,rate of inflations and the rate of exchange that are directly concerned with the businessoperations are all dependent on the government policies (Baker, Bloom and Davis 2016). Therate of exchange accepts the costs of exporting the services and goods and the price of theimported goods in the economy but it is also to note that they will be positively impacting thebusiness growth of any firm only when the government policies are positive. Furthermore, incase of the social factors, the government ownership have a great impact on the demands ofthe people and the population as they have to buy only those products that are allowed by thegovernment and are made available by them for making purchasing (Charles 2017). Also, thetechnological are also affected by the political factors of the country. The technological
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