Report on the Global Business Environment: Challenges and Expansion

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Added on  2023/01/13

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This report provides an analysis of the global business environment, examining factors that influence businesses operating internationally. It begins by assessing the emerging risks faced by multinational social media firms like Facebook, Twitter, and Instagram due to governmental regulations and bans, and their impact on profitability. The report then explores the economic approaches of US President Trump and their effects on China, specifically focusing on trade deals and tariffs. Finally, it investigates global expansion opportunities in developing markets such as India and Russia, highlighting the benefits and strategies for international business growth, including the example of Marks & Spencer's expansion in India. The report draws on various academic sources to support its claims and provides a comprehensive overview of the current global business landscape.
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Global Business Environment
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Table of Contents
INTRODUCTION...........................................................................................................................3
Rising risk upon global social media firms.................................................................................3
TASK 2............................................................................................................................................4
Economic approaches by US president and their impact on china ............................................4
TASK 3............................................................................................................................................5
Global expansion opportunities in developing market................................................................5
REFERENCES................................................................................................................................7
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INTRODUCTION
The global business environment can be defined as the environment in the different
sovereign countries. There are some factors from the global environment which can affect the
profitability of the organizations. It can also influence on the decision-making of the company,
resources and capability.
This report will summarise the risks at multinational social media firms such Facebook,
twitter and Instagram, faced from the government rule and their impact on those organizations
( Doh, Luthans and Slocum., 2016). This report will also explain the Chaina president Trump's
approaches to economic polices effect upon the India. In the end of this report will explain how
rising economies are presenting new opportunities for the international business expansion. It
will also conclude that how governments use both Monetary polices and fiscal polices to
stimulate economic activities and rise on the international level using the trickle down.
TASK 1
Emerging risk upon worldwide social media firms
There are some leading social media organizations such as Facebook, twitter and
Instagram are facing problems in the global level because of governmental rules and their
regulation. There are many counties where government have banned social media due to over
use among youth. They are spending their most of the time on social media and in the result
government of those countries are banning over use of social media. It is affecting on their
profitability and business as well. Most of the counties ban those firms because or their negative
use. Most of the treats were using social media for the fraud and cyberbullying. Social media is
useful in many ways but people are using for wrong purpose (Barac and et.al., 2016). Social
media is the place where people can rise their voice and educate others but now social media is
mostly used for the abuse and many political parties are using this tool to run their propaganda.
Most of the political parties are using social media to spread wrong new among the society
which create conflicts between the people. Some of the famous platforms such as Facebook and
twitter have huge following in worldwide but political factors of the some counties spoiling their
images on the global level. It is impotent for the social media sites who have huge market in the
worldwide should take strict actions and make their applications more secure and better for the
people, so they can use it for the education and communication purpose. There are some places
where social media firms cannot reach because of environmental conditions. Those places do not
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have internet so social media platforms are not able to reach to those places. Some of the
governments ban internet because of conflicts in their county (Bedianashvili., 2016). It affect on
the social media firms directly and it affect on the company's profitability, and they are not able
to make profit on those counties. India is the place where most of the time government have
shutdown internet and it affect on the social media firms. It is also an issue for the sociality as
well because social media is the place where they can rise their voices through the social media
and if government shutdown internet then people will not able to present their thoughts and
express their feelings to their government.
TASK 2
Economic approaches by US president and their impact on china
Us president trump has signed trade deal with china which is putting economic conflicts
on pause. This was to bring the new cheater of a protracted and economically damaging the fight
with one of the most the sizeable economies to a close (Chasdi., 2017). Instead of opening new
companies in the china market, trump wants to increase energy exports and give faster security
for the US technology and the trade secrets. Chine has also given commitment to but the more
than 200 billion dollars worth goods from the America and the services by the 2021 and the
expectable to remove several of their duty from the American products.
But according to the agreement configure the bulk of the duties and tariffs which
American president has places more the 359 billion dollars Chinese goods , and it also holds
over the punishments if china does not deal with them according to the deals have done between
the china and America.
This deal has been done for the more than 2 years of tense discuss and negotiation the
threats which at times appear to the fall the China and US into the economic parliamentary war.
US president also run their companion in 2016 election where they promise to make good
relationship with the china (Coe., 2018). Trump has paused their trade writer to rewrite the trade
rules and regulations with the Chinese country. This agreement is the important turning factor for
the US trade policy and the types of the free trade agreements which the United States typically
supported. These deals allow both the counties to exchange good and services to meed the
demands of their markets and their markets. This trade agreement by the America leaves the
record level of the tariffs in the place and it also forces chain to buy goods from the US for more
than 2 years of time period. When other President try to change in this agreement then trump
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leaned into it. This agreements ensure from the china that they will have to buy more than 200
billion dollar worth good from the America by 2021 (Kasemsap., 2018). This agreement and
approach by the American president trump many times pay off politically. Trump will head into
a re-election campaign with a commitment from China to modify its intelligence-property
protections, make the large buy of American products and pursue other economic modification
that will benefit American business.
This is great deals by the dependent trump for the America because it will help to
improve their market stability, and they can improve their economy as well. This deal will also
increase the jobs for the US people, and they can get better sealers in their job.
TASK 3
Global expansion opportunities in developing market
There are some market such as India and Russia which can be best options for the
organizations to expand their business and make huge profitability in those market. It is
important for the firms for those opportunities and expand their business in those counties. India
can be the best option amongst the all developing counties because of population. This county
has 2nd highest population in the world. It means organization can attract many customers in
their stores and increase their growth in the global market. Indian government encouraging
companies to come into their country and start their business. It is profitable and better deal for
the both because most of the people in India are unemployed (Tallman, Luo and Buckley.,
2018). If companies ill come from the other counties than it will helps to create job opportunities
for the Indian people. Government take low taxes from the countries which is plus point for the
companies who come from the other counties. There are some of the most popular brands who
have stabilized their store is the India and increasing growth in the market. People in India are
ready to work in the low salaries and wages. It will be beneficial for them because they will get
labour in low prices, and they will not need to recruit employees from the other counties. People
who belong to the middle class families also like to buy their clothes from the big brands or new
stores. Companies who are looking to expand their business in India will defiantly get advantage
from this.
Courancy rates of this country is also low so companies who will come from the market
like UK and US can get benefits from this, and they can increase their growth in this market. It is
important for the companies who want to expand their business on global level. They should
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focus n the Indian counties, and they can defiantly successful to expand their business in this
country.
Marks & Spencer is best example because they are successful to expand their business in
India, and they are make high profitability in the market. M&S is able to show their presence in
this market, and they are having huge existence in Indian market. This market has appeared as
the second biggest market after the United kingdom for the Marks and spacers company and
the British retailer company is looking at a double growth in terms increasing their stores this
fiscal, said by the superiors of this company (Tallman, Luo and Buckley., 2018). M&S has
established more store each in Chennai and Hyderabad and other locations As part of business
expansion, Marks & Spenser is now looking for the fast rising tier II & III cities and also plans
to expand the products reach with more local relevance. It is necessary for the other companies
who want to expand their business on the international level should look for this market. They
can gain opportunities in this market and show their global presence.
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REFERENCES
Books and journal
Doh, J. P., Luthans, F. and Slocum, J., 2016. The world of global business 1965–2015:
Perspectives on the 50th anniversary issue of the Journal of World Business: Introduction
to the special issue.
Barac, K. and et.al., 2016. The capability and competency requirements of auditors in today's
complex global business environment.
Bedianashvili, G., 2016. The Global Business Environment, European Integration and the
Cultural Potential of Social-economic Development of Georgia. Globalization & Business.
Chasdi, R. J., 2017. Corporate Security Crossroads: Responding to Terrorism, Cyberthreats, and
Other Hazards in the Global Business Environment. ABC-CLIO.
Coe, N. M., 2018. Global production networks. In The Routledge Companion to the Geography
of International Business (pp. 147-160). Routledge.
Kasemsap, K., 2018. Mastering business process management and business intelligence in global
business. In Global Business Expansion: Concepts, Methodologies, Tools, and
Applications (pp. 76-96). IGI Global.
Tallman, S., Luo, Y. and Buckley, P. J., 2018. Business models in global competition. Global
Strategy Journal.8(4). pp.517-535.
Tallman, S., Luo, Y. and Buckley, P. J., 2018. Business models in global competition. Global
Strategy Journal.8(4). pp.517-535.
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