Global Business Environment Analysis: Culture, Trade, and Risks

This report provides a detailed analysis of the global business environment, examining the roles of culture, governments, and international organizations in promoting global trade. It assesses the opportunities and threats posed by cultural differences, highlighting the impact of globalization and inter...Read More

Running head: GLOBAL BUSINESS ENVIRONMENT ANALYSIS
GLOBAL BUSINESS ENVIRONMENT ANALYSIS
Name of the Student
Name of the University
Author Note

2GLOBAL BUSINESS ENVIRONMENT ANALYSIS
Table of Contents
Introduction......................................................................................................................................3
Evaluation of the current role of culture, governments and international organizations in
promoting global trade.....................................................................................................................3
Assessing the current opportunities and threats posed by cultural difference in the global
environment.....................................................................................................................................5
Evaluating the risks, costs and benefits currently of doing business in different countries (India,
China, USA, Australia, Germany, France and Britain). Use examples and evidence to support
your views........................................................................................................................................6
Conclusion.......................................................................................................................................9
References......................................................................................................................................10

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Introduction
Culture can be defined as the characteristics and the knowledge gained by a particular
group of individuals based on the aspects like religion, language, social habits and cuisine. The
culture of an organization is on the other hand able to influence the behavior of the employees
and the operations of the firms as well. Culture is able to play a key part in proper economic
development of the countries. Economists have narrowly defined culture as the customary values
and beliefs that the ethnic, social and religious groups are able to transmit from generation to
generation in an unchanged manner (Adekola & Sergi, 2016).
The report will be built on the detailed study of the impact that governments, culture and
the international firms have in the promotion of global trade in a proper manner. The threats and
opportunities that are posed by different cultural differences towards global environment will
also be discussed in detail. The evaluation of costs, risks and benefits that are currently faced by
business organizations in various countries like India, China, USA, Australia, Germany, France
and Britain is also a part of the report.
Evaluation of the current role of culture, governments and international
organizations in promoting global trade
The international community has started becoming highly interdependent and
interconnected in nature due to rapid levels of process that has been depicted in the process of
technology implementation. International organizations are considered to be important actors
who play a major role in development and resolution of issues that are related to the international
politics (Ahmad & Amin, 2019).

4GLOBAL BUSINESS ENVIRONMENT ANALYSIS
The United States has been successful in becoming the global leader even after entering
the 21st century which is mainly based on the turnaround depicted by the country from the 1980s.
The growth in levels of productivity have led to the enhancement in average living standards of
people in a country like the US. The economic engagement that is developed by the United
States with the rest of the world is able to play a key part in economic revival of the country (Cao
& Wang, 2017). The open borders have also been able to permit the foreign goods that are
provided at low or zero tariff. The inflow of funds that had taken place at the time of financial
crisis in Asia had been able to reduce the interest rates and a boom was also experienced in the
consumption and levels of investments (Dür, Eckhardt & Poletti, 2019).
International relations and globalization are related to each other in an effective manner
and this able to play a key part in influencing the trade based activities that take place in different
parts of the world. The worldwide technology based aspects are enhanced due to implementation
of globalization and fast communication process is also enabled in the process. International
relations have also been able to use globalization for the purpose of reaching the goals and
achieving the objectives as well (Hamilton & Webster, 2018). The proper understanding of
globalization, international relations and culture is considered to be critical for the future of
people, governments and the businesses as well. The various concerns that are faced by
international organizations in the world are related to the trade related activities that are
performed on a global basis (Islam, Arbak & Joarder, 2019).
The impact of globalization is considered to be an important aspect that is able to
influence the trade related activities of the organizations in different parts of the world. The
continuing integration that is depicted by the different countries is considered to be a major
aspect of globalization. Globalization is also able to depict a complex interconnection between

5GLOBAL BUSINESS ENVIRONMENT ANALYSIS
the levels of democracy and capitalism as well (Kahouli & Omri, 2017). The trade barriers and
activities are influenced by the decisions that are made by the governments of different countries.
The international organizations like the World Bank, World Trade Organization and
International Monetary Fund are able to play a significant role in development of the trade based
rules. The national governments of various countries have started losing some amount of their
importance in the “Global Village” due to the presence of different international organizations
(Johns, Pelc & Wellhausen, 2019).
Assessing the current opportunities and threats posed by cultural difference
in the global environment
The companies have continued to expand their operations in the global marketplace and
across the borders as well. The accessibility of global marketplaces have started increasing and
the international work opportunities have also enhanced in the last few years. The cross-cultural
and multinational teams are now considered to be more common for the business organizations
in different parts of the world. The businesses are also able to benefit in a huge way from the
diverse levels of knowledge base and the insightful approaches towards various business
problems (Kolcava, Nguyen & Bernauer, 2019). The benefits that are offered to the
organizations by expertise and insights are able to provide major levels of help to the firms so
that they can face the stumbling blocks that are related to international business and culture. The
norms that are accepted by the professionals in a particular country can be quite different from
those which are followed by the others in different parts of the world (Lenzen et al., 2018).
The implementation of a proper recognition process that is related to proper
understanding of the differences that exist between the various cultures is considered to be quite

6GLOBAL BUSINESS ENVIRONMENT ANALYSIS
important for the purpose of maintaining the organizational operations. The three major areas
that are taken into consideration for the development of international businesses mainly include
organizational hierarchy, communication and etiquette. Effective communication is considered
to be a major part of the success that is gained by an organization and it is considered to be
critical for the purpose of managing the risks that are faced in the industry (Mathur & Sai, 2018).
Both verbal and non-verbal communication are able to play a key part in maintaining the
operations of international business organizations in different parts of the world. The workplace
etiquettes are also considered to be a major aspect that have an influence on the differences that
exist in the multicultural workplaces (Poon & Rigby, 2017).
The concept based on punctuality is also considered to be quite different for the various
cultures that are a part of the international business environment. The attitudes and
organizational hierarchy towards the role of management can also be quite different for the
various cultures. For example, in a country like Japan the importance of social hierarchy is
considered to be quite high as the respect related to the levels of seniority is also maintained
(Wang et al., 2018). The hierarchy is also considered to be helpful for defining the
responsibilities and roles of the employees within the organization. However, in case of the
Scandinavian countries like Norway the emphasis on the levels of societal equality is considered
to be quite high and flat organizational hierarchy is quite prevalent in the country as well
(Rugman & Verbeke, 2017).

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Evaluating the risks, costs and benefits currently of doing business in different
countries (India, China, USA, Australia, Germany, France and Britain). Use
examples and evidence to support your views
A. Cross cultural risk in India, China, USA, Australia, Germany, France and Britain
The cultural differences that exist between the countries like India, China, USA,
Australia, Germany, France and Britain are able to influence the operations of various
organizations and the communication between employees as well. The culture of the
countries like India and China are mainly based on the hierarchies that are present in the
organizations in the industry. On the other hand, the cultures of major countries like
USA, Germany, Britain, France and Australia are considered to be quite similar in nature
and the lack of hierarchies lead to the development of flat organizational structure (Poon
& Rigby, 2017). The risks that are faced by organizations in these countries are mainly
based on the ways by which cultural changes can influence the behavior and relationship
between the employees as well. The manners, values and customs of the various
countries can influence the relationships between the employees. The differences in
languages and the context of cultures can also define the ways by which organizations
can maintain the operations (Wu, Ma & Zhuo, 2017).
B. Country risk in India, China, USA, Australia, Germany, France and Britain
C. The political factors in different countries have a key influence on the operations of
different organizations and profitability levels as well. The political stability levels in
India and China are lower in comparison to the countries like USA, Germany, Australia,
Britain and France. This has a major impact on the ways by which organizations can
maintain their operations. The differences in tax rates can also play a key part in

8GLOBAL BUSINESS ENVIRONMENT ANALYSIS
influencing the prices of the services and products that are offered by the modern
international organizations (Zong et al., 2018). The tax rates in the developed countries
are considered to be quite higher in comparison to the emerging countries. The
production process of major organizations like Apple have being moved to the emerging
countries like China and India in which the cost of production is considered to be quite
low. The external factors are thereby able to influence the production based operations
that are conducted by the organizations in different countries (Poon & Rigby, 2017). The
legal risks that are faced by the organizations in various countries like India, China, USA,
Australia, Germany, France and Britain are based on the stringent regulations that are
developed by the governments of countries. The organizations will be able to maintain
their profitability levels with the support that is provided by the proper implementation of
government regulations for development of organizational policies in their operations
(Un.org, 2020).
D. Currency risk in India, China, USA, Australia, Germany, France and Britain
Currency based risks are considered to be important aspects that can have an impact on
the international operations in the countries like India, China, USA, Australia, Germany,
France and Britain. The differences in currencies used in the various countries can have
an impact on the prices of products and tax rates as well (Poon & Rigby, 2017).
E. Commercial risk in India, China, USA, Australia, Germany, France and Britain
Commercial risks in the countries like India, China, USA, Australia, Germany, France
and Britain can influence the ways by which various international organizations can
maintain their operations and revenue levels as well. A major commercial risk that is

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being faced by the countries in the year 2020 is mainly related to the spread of a disease
like Coronavirus. Different countries have started implementing various measures to stop
the spread of new coronavirus that mainly include shutting down of the airports, sealing
the borders and imposing the travel based restrictions as well (Kolcava, Nguyen &
Bernauer, 2019). The implementation of various measures have a major impact on the
operations of the organizations and revenues that are earned by them as well. A huge
crash in the market has also taken place in the last few months due to the spread of this
disease. The ban of travelers from Europe in the US is also able to influence the business
operations of different organizations. Many different sporting based events have been
cancelled due to the huge spread of this disease in different parts of the world (Islam,
Arbak & Joarder, 2019). The major organizations like Facebook and Microsoft have
cancelled their conferences due to the impact of this disease. The production processes of
the modern organizations in
China have been stopped and this is able to influence the trade based activities in
different parts of the world (Rugman & Verbeke, 2017).
Conclusion
The report can be settled by stating that the contemporary Global Business environment
in Q1 of the year 2020 has been based on the methods by which different organizations are able
to maintain their business processes. A major role is mainly played by culture, international
organizations and the governments in effective promotion of global trade. On the other hand, the
cultural differences can influence the ways by which organizations can maintain their operations
and the relationships can be developed with the employees as well. The risks that are related to

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the changes in the business environment of the countries like India, China, USA, Australia,
Germany, France and Britain can affect the operations of the international organizations.

11GLOBAL BUSINESS ENVIRONMENT ANALYSIS
References
Adekola, A., & Sergi, B. S. (2016). Global business management: A cross-cultural perspective.
Routledge.
Ahmad, N., & Amin, S. (2019). Does ethnic polarization stimulate or relegate trade and
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Dür, A., Eckhardt, J., & Poletti, A. (2019). Global value chains, the anti-globalization backlash,
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