Global Business Environment Analysis
Introduction
The essay gives a brief review of globalization, internationalization, technological renovation and global business environment analysis. Major factors that hinder business expanding into global are cultural, political and legal, economic and technological factors. To achieve global business companies should be equipped with a global mindset and have a good understanding of entry strategies such as franchising, joint ventures, exporting and importing and strategic alliances.
Globalization, Global Business, Technological Renovation & Internationalization
The increasing forces of globalization and technological renovation have enabled enormous growth in global economic activities. Globalization is defined as a large degree
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Cultural Factor There are large cultural differences around the world and these differences influence the way how global business should be operated such as the pace of business, decision making and negotiation, employee management, risk management, sales and marketing, product distribution and so on. Many people have a deep root thinking that business is all about making profits yet culturally businessmen can have different level of trust and understanding on business partners across different borders. To lower the impact of cultural factors in operating global business, one should learn about the culture of your business partners and should not judge your partners using value system of your own. This is to reduce miscommunication and misunderstanding across companies with different cultures (Carpenter & Dunung, …show more content…
In turn it is global business that regulates and monitors the politics and legals of countries instead of vice versa. Politically, some industries are considered to be necessary for certain purposes and they are protected by governments e.g. telecommunications and infrastructure. For these industries government do not prefer the exchange of information to foreign business partners. Other instance governments may want to preserve young local industries and this is simply driven by economic factor; or governments may want to limit foreign companies to operate in food, media and music industries in their countries due to cultural factors (Carpenter & Dunung, n.d.). As a result foreign business partners should pay attention to all these industries if they plan to enter into certain
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