Exploring Key Factors Influencing Global Trade and Business Growth

This report analyzes the key factors driving global trade, including cost, market, competition, and the environment. It examines how digital technology impacts globalization, particularly through increased economies of scale and reduced transportation costs. The report highlights strategic challenges for businesses expanding internationally, using PESTLE analysis to assess political, economic, social, technological, environmental, and legal factors. Specific challenges mentioned include government regulations, economic stability, skilled labor shortages, and technological advancements. The report emphasizes the importance of understanding these factors for successful international business operations, focusing on how companies like CAMECO can navigate these complexities.

GLOBAL BUSINESS
ENVIRONMENT

Key factors of cost, market, environment
and competition that drive global trade
Globalization is the procedure of interaction and combining between people, firms and government
worldwide. It is considered be some as kind of capitalist expansion which allows the integration of localized and
nationalized economies into international unstructured market economy. Due to advances in transportation and
communication technology, globalization has grown. Increasing the international interaction comes the growth of
global trade, thoughts and culture. There are four factors which are driven globalization such as:
 Cost
 Market
 Competition
 Environment

Impact of digital technology upon globalization
 Technology development is the main force of driving the globalization. It is to become international through raising
the economies of scale and market size needed to break even.
 Advancement of technologies decrease costs and transportation and communication across countries. Therefore, it
facilitates global sourcing of raw material and other inputs to CAMECO.
 Globalization is encouraged through patented technology as the company owning the patent which can effort
international markets without more competitions.

Complexity of strategic challenges in relation
to operate in global environment
 Many of company want to expand their business in international markets, so that they are
faced many of strategic challenges in relation to business environment. This challenges
represent through PESTLE analysis of the nations in which CAMECO want to expand
their business.

PESTLE analysis
 Political Factor: CAMECO is the chemical company that has expanded
their business in Canada. Therefore, company is faced challenges about the
government rules and regulations, trade policy, taxation which are
followed in the selected nations..
 Economic Factor: Company faced different challenges relating to growth
rate, inflation rate, exchanges rate, stability of Canada, interest rate and so
on. These factors highly effected on operation of CAMECO and their
business expansion within the nation

CONTINUE
 Social Factor: CAMECO faced challenges in terms of large shortage of skilled workers,
deficit in hindering the growth of companies
 Technological Factor: Technology is playing the large role in economy of Canada. Therefore,
the growth of technology is highly impact on the operation and business expansion of
CAMECO.
 Environmental Factor: CAMECO has expanded their business, so that they are faced different
environmental issues such as carbon footprints, pollutant emissions, waste etc
 Legal Factors: It involves Data protection regulations, health and safety, employment
regulations which are highly effected on business expansion of CAMECO

REFERENCES
 Botha, A., Kourie, D. and Snyman, R., 2014. Coping with continuous change in the business environment: Knowledge management and knowledge
management technology. Elsevier.
 Bryson, J. M., 2018. Strategic planning for public and nonprofit organizations: A guide to strengthening and sustaining organizational achievement.
John Wiley & Sons.
 Dunning, J. H., 2014. The Globalization of Business (Routledge Revivals): The Challenge of the 1990s. Routledge.

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