Global Business Management for the Promotion of Global Trade

Running head: GLOBAL BUSINESS MANAGEMENT
Global Business Management
Name of the Student
Name of the University
Author’s Note:

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Table of Contents
1. Introduction..................................................................................................................................2
2. Discussion....................................................................................................................................2
2.1 Evaluation of the Current Role of Culture, Governments and International Organizations in
Promotion of Global Trade..........................................................................................................2
2.2 Assessment of the Current Opportunities as well as Threats posed by Cultural Differences
in the Globalized Environment....................................................................................................4
2.3 Evaluation of the Risks, Costs and Benefits currently of doing business in Several
Countries......................................................................................................................................6
3. Conclusion...................................................................................................................................7
References........................................................................................................................................9

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1. Introduction
Global business management can be stated as the proper management of different
business operations for a company, which is responsible for conducting business in more than
one country (Peng, 2016). These distinct transactions involve proper transferring of goods,
services, managerial knowledge and technology towards other countries. Such businesses can
easily gain maximum effectiveness and efficiency for the entire society and the world and hence
ensure that the complexities are avoided on a priority basis (Wirtz, Tuzovic & Ehret, 2015). The
successful management of different business actions for a company, which conducts business is
more than 1 specific country. This international management needs proper skills as well as
knowledge beyond the normalized business expertise like major familiarity with the respective
business guidelines, where the organization is operating and also learning about the local laws
and customs eventually. In spite of having such distinct advantages, recently, there had been
issues due to the pandemic in the world (Lasserre, 2017). This report will be outlining a brief
description on global business environment of 2020 for assessment of threats, expenses and
advantages in different country oriented business.
2. Discussion
2.1 Evaluation of the Current Role of Culture, Governments and International
Organizations in Promotion of Global Trade
Globalized trades or international trades are required for the export and import of
different goods as well as services across several international boundary. These goods or services
that make an entrance into a nation for sales are known as imports (Hakanen, Helander &
Valkokari, 2017). However, the goods, which leave the nation for sale in other country are
known as exports. There are some of the most significant and important advantages of global

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trade for better execution of the business processes and operations. Investments are done
properly, so that it becomes quite easier for the business to gain maximum effectiveness and
efficiency without much complexity (Ductor & Leiva-Leon, 2016). Global trade is responsible
for creation of economic wealth over a globalized scale, since every country exploits the
development and revenue after emphasizing on the best and also saving monetary benefits on
imports, which will be expensive for it to ensure domestically.
It is extremely important and significant to understand different culture while doing
business, so that maximum effectiveness is gained under every circumstance. It is vital to raise
the awareness of different cultural issues in an organization that is doing international or global
business in the world (Mendenhall et al., 2017). Culture plays one of the most vital and
noteworthy roles in managing a global trade, so that the respective business is free from every
subsequent damage being made to the business processes and operations. Failure to understand
as well as cultivate the specific aspect of the deal of culture increases the chance or opportunity
to make a business failure.
There is a significant importance in the role of governments for deciding whether they
would be allowing the international businesses in stepping out their distinct operations and also
encouraging them in growing and succeeding properly (Hooper, 2016). Currently, the entire
world is facing pandemic situation and as a result, it is needed to ensure that the government of
every country is supporting their respective businesses, so that the international businesses are
able to deal with the economic downfall easily and promptly. Moreover, they should check if the
process is continuous as well as consensual and the successive governments are continuing their
same policies and are not dependent on the host of factors (Kasemsap, 2016).

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2.2 Assessment of the Current Opportunities as well as Threats posed by Cultural
Differences in the Globalized Environment
The present situation in the global environment is highly vulnerable and several
businesses are facing major downfall or losses due to these (Kaynak & Lee, 2018). The four new
entry risks in the current global environment are provided below:
i) The first and the foremost new entry risk in the current global environment is the
coronavirus epidemic. It has eventually led to the most significant paralysis of the economy of
China well into Q2 with distinct unambiguous significances for the suppliers and clients of China
around the entire world, since raw material expenses are crashing and different manufactured
objects are becoming less (The Global Business Risk Report Q1. 2020). It has the GBI score of
60 out of 100.
ii) The second distinct and important new entry risk in the current global environment is
the decline in the automotive sector. It has subsequently caused issues for the industrial sector of
Europe with a knock on impacts for the globalized supply chains. It has the GBI score of 30 out
of 100.
iii) The next significant and important new entry risk in the current global environment is
coronavirus becoming a globalized pandemic and hence impacting the most urbanized areas in
the entire world within the respective emerging market as well as different advanced countries
which are alike with several unexpected consequences for the global economy, politics and even
mortality (The Global Business Risk Report Q1. 2020). It has the GBI score of 25 out of 100.
iv) The final significant and important new entry risk in the current global environment is
the tension between US and Iran. It has led to the actual military conflicts within the nations;

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hence instigation the ending of the Persian Gulf to every oil tanker as well as pushing oil prices
more than USD 150 for one barrel. It has the GBI score of 25 out of 100 (The Global Business
Risk Report Q1. 2020).
After analyzing the current situation in the global business world, it is being observed
that there are minimal opportunities for the cultural differences in doing a global business. One
of the major and the most significant opportunity that a business can have due to global trade is
communication (Gooris & Peeters, 2016). The business can communicate with businesses from
other countries and as a result, ensure that the cultural differences are eradicated and there
business is expanded. Interaction with other country is the second vital and significant
opportunity that a business can have due to global trade. Moreover, a hierarchy is maintained in
the company and the attitude towards management and organizational hierarchy is perceived.
There are some of the most distinct and important threats opportunity that a business can
have due to global trade in current situation (Hill et al., 2017). Due to the epidemic of
coronavirus, there could be a major loss of employees and the business would face major losses.
Moreover, it would also not allow them in getting adapted to the global business models to the
local market. Since the costs of doing business in a global market are high, the business can be
financially doomed and would not be able to recover from the respective situation under any
circumstance (Ductor & Leiva-Leon, 2016). The management practices across cultures would be
lowered and the business would not be able to deal with such distinct situations and would fail to
identify the new opportunities.

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2.3 Evaluation of the Risks, Costs and Benefits currently of doing business in Several
Countries
There are some of the most distinct and important risks to do business in different
countries for the present situation. The global business impact score in the present situation is
going high and has reached to 318, which is the highest point for last 6 years.
Figure 1: Global Business Impact Score
(Source: The Global Business Risk Report Q1. 2020)
The political aspects in different countries are being affected due to the geographical
diversity of risks that are being faced by businesses in present situation, with 3 risks arising from
North America, one from Asia Pacific, 2 from Western and Central Europe and 4 pan regional
risks. These distinct types of risks even remain diversified and are closely related to politics,
which include the corona virus outbreak, structural problems and finally economic development
(Wirtz, Tuzovic & Ehret, 2015). There are some of the most distinct and important political

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factors present as well, which check the impact of businesses and process to conduct a business
eventually. The structural risks towards economic damage as well as geo political harm has
stemmed from the technological threats; these are being driven by the artificial intelligence (The
Global Business Risk Report Q1. 2020). These threats involve cyber attacks, data theft or any
type of fraud activity by the non state or state actor.
The risks to do business in different countries in current situation would also increase the
chance of increasing costs to a high level and the business might not be able to deal with such
complex situations easily. The costs might increase to billions and the entire economy of a
specific section of the world would be crashed completely (Hakanen, Helander & Valkokari,
2017). Moreover, they would not be able to complete their business schedule easily and the
operations would be stopped. The most affected regions in the world due to corona virus
outbreaks include Asia, North America and Europe and hence businesses in these regions would
be extremely costly as well as risky for any existing or new business.
The business might not be able to reach to its point and they might lose their valuable
assets in the most distinct manner. Benefits in doing business in different countries in current
situation would be quite minimal for the economic and social turmoil (Hooper, 2016). Although,
the entire world is affected, the regions that are under control include New Zealand. New
business in New Zealand would not increase high risks or costs and the business would be done
easily and promptly without any type of risk.
3. Conclusion
Therefore, from the above discussion, a conclusion can be drawn that there had been
some of the most significant and noteworthy global risks for business, as per the Global Business

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Risk Report Q1 2020. There are some of the most distinct and noteworthy threats in the business
that can have potential impacts on different businesses; hence conveying a major score to every
risk. The respective scores from the top 10 risks are being utilized for calculating the overall
score of global business impact. In the ever evolving globalized environment, there exist 4 new
entries in the risk categories, which include 2 pan regional threats from Asia Pacific as well as
Western and Central Europe. As a result, the global business is often affected and the
management faces several issues and complexities due to them. International business is the
commercial enterprises, which perform economic activities beyond the subsequent bounds of the
locations and comprises of different branches in two or more foreign countries and also makes
proper utilization of cultural, political, legal and economic within countries. The report has
clearly outlined a detailed analysis of global business management with new risks and threats.

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References
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Gooris, J., & Peeters, C. (2016). Fragmenting global business processes: A protection for
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Hakanen, T., Helander, N., & Valkokari, K. (2017). Servitization in global business-to-business
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