Western economies are stagnating, and emerging market growth has slowed, so economic growth over the next several years will be slower. International businesses must plan for profitability in the face of more slowly growing demand. Clean Technology Environmental factors are already a major influence in the West and will become more so worldwide. Businesses must take into account the environmental impact of their normal operations. They can try to market environmentally friendly technologies internationally.
The economic growth will depend on the local sectors as well as on international economies. Furthermore, there has been a rise in the rate of unemployment since 2012. In order to increase the economic growth, factors like unemployment has to be tackled first. A successful business will respond to economic conditions and stakeholder behaviour. In the current business world, organisations are affected by economies throughout the world and not just the countries in which they are based or operate from, hence business experts have to be aware of economic conditions across all borders and needs to ensure that it employs strategies that protect its business
Amalgamating these four challenges of a Global Company with the potential opportunities presented by a global economy, companies are willed to pursue the opportunities while cautiously controlling the risks to capture the optimal amount of worth. In order to obtain value in a constantly escalating global market, companies should create calculated business units with strong intercontinental leadership through upholding ethics and a strong public
2.2.1 Political Political factor often refer to government intervention, entry barriers, tariff structures or tax, which are set to benefit to government or citizen. The political has huge effect on the business. All firm must follow the law and rules because several aspects on government policy given a lot of impact to an industry. When an industry will not be able success, good reputation and trust, if the industry fails to consider legal and political as part of their strategy. The political environment can bring impact to an organization in many ways.
So businesses do not understand the role of business ethics, no sense of building ethical business in the enterprise, the enterprise will be very difficult to go to the highest success. Understand concepts, roles, and how to build business ethics is extremely important for businesses. First,
3- The effect of political and economic factors on business: Political factors that affect businesses include new legislation such as the national minimum wage and setting TAX rates such as VAT or corporation tax. As tax can be affected by how the economy of the state is ,as you can see when the economy is collapsing the tax rates are usually increased in order to gain what is lost by the collapse . Economic factors that affect firms are inflation and unemployment, interest rates and exchange rates if importing or exporting goods abroad. (http://www.bbc.co.uk/bitesize/higher/business_management/business_enterprise/business_contemporary_society/revision/14/) 4- Current factors which might affect businesses now and in the future: Nowadays, The problem of Qatar with most gulf countries influenced on business, those countries stopped the import exchange which made the state of Qatar to make a deal with Iran and Turkey to get imports at more expensive price, Also Trump when he said that “ Jerusalem is a capital of Israel “ it affected the economy as many of the countries who opposed this stopped interacting with the US market which caused them to have a to lose some of their financial customers (B2B) . In the future, The main factors are the global wars will impact on the world businesses as well as cutting off the relations of countries and natural disasters,
ABSTRACT Although international business is not a new subject, the size and number of international investments is gaining instant importance. As the world entered the new millennium, one of the major challenges facing business people and governments is the international business. Communications and technological advances in the last 50 years have had a great effect on the way that consumers act and companies operate. In the past, consumers and businesses mainly lived and made decisions on either a local or regional basis only. Today and into the future, the world will have lesser and fewer boundaries to restrict the businesses, cultures, or the consumer demands.
The third refers to how the business model can maintain its efficacy over a period and this robustness is linked to how a company deal away with risks (Casadesus-Masanell and Ricart, 2007). According to Chesbrough (2010) conceptualizing a business model is a daunting task but also crucial to succeed. He further stresses that that external factors that can pose a threat to the performance of the business must be taken into consideration. Teece (2010) argues that there are criteria that enable the determination of a good business model. They include the
These include the culture, age, race, and even social lifestyles. 4. Technological factors: The technological influences on a business such as the machinery, technological advances, etc. 5. Environmental factors: The influences on trade that happens due to environmental location.
And lack in mobility and doesn 't satisfy individuals financially. But there are some advantages such as the there will not be drastic changes in the behavior of the economy. People know the routine as to who to exactly trade and what to accept from that trade. A huge amount of the world still practices the traditional economic system. Usually second or third world and rural countries.Even though they are tied down by tradition they do in fact collaborate and engage with other economies to buy , sell and trade.