24 x 7 Online Help
Assessment Point 1: Reflective Report
Get Free Samples Written by our Top-Notch Subject Experts For Taking Online Assignment Help Services
International Business Environment is the surrounding in which international businesses run their organization (Ghauri, Strange and Cooke, 2021). It is the broader area to discuss, it is mandatory for the people in managerial positions to maintain the work in the comprise factors of the international business environment. International Business Environment includes several risks and issues like Political Risks, Differences in culture, social risks, Exchange risks and legal risks. It is the major for a country’s economy or financial condition, though in a country there is a huge contribution of the international business environment for the growth and development of the country (Ghauri, Strange and Cooke, 2021).
International Business Environment is a “Multidimensional” as it includes the several risks which are mentioned above and it also comprises political, economic, tax, social, technological and regulatory environments. In an international business environment, there are several types of environments like “Macro-Environment, Micro-Environment, Political Environment, economic environment, technological environment and cultural environment”. The international business environment has so many positive aspects, it helps to develop new technology, development of infrastructure, it also boosts managerial skills, creates jobs, it also brings investment from the other country by exporting goods and services, etc (Möller, Nenonen and Storbacka, 2020).
In this study, I have mentioned the modules I have learned in the first five weeks as well as I also have described the concepts of the International Business Environment. I also have mentioned the nature of international corporations and also mentioned how environmental factors affect the time of opening a new business entity in an international market. In terms of the international business environment, I have mentioned all of my academic knowledge about this topic (Möller, Nenonen and Storbacka, 2020). It is a vital topic for every multinational organization to explore their business and it also helps businesses to understand the international market as well as the environment. There are many benefits for the businesses at the multinational level for the international business environment to boost the business processes of the organizations.
I have learned so many things about the international business environment and it was very motivating as well as informative. It gives me a vast knowledge of the international business environment and the effect of globalization on the business environment (Jahanger, Usman and Ahmad, 2022). I have understood that global practices of businesses have become more complex after introducing globalization. The modules help me to understand the international management positions and the strategies used by the businesses to expand their businesses. All the concepts that I have learned will help me a lot in my practical life, all the things that I have learned during the classes are mentioned in this study.
Reflection On Learning from The Weekly Module
During the first five-week, I have learned so many modules about the Global environment of business, from these modules I have learned concepts and measurements of macroeconomics. From this module, I have learned “How do we measure the level of price of the economy?”. In “economics price level is the buying power of inflation or money” (Cochrane, 2019). It describes the “state of the economy by looking at how much a person buys with the same particular currency and the most common index in the level of piece is the consumer price index”. As well a level of price in the investment world work as an “investor make money by buying and selling securities”, they are investing their money when the price level is the adjustable value, its mean “price fluctuation is used as a reference for inflation and deflation if the price of goods services increases quickly when an economy experiences inflation a central bank can step in tighten its monetary policy” (Cochrane, 2019).
“Real interest rate” has been “adjusted to remove the effects of inflation to reflect the real cost of fund to the borrow and the real yield to the leader or to an investor” (Papetti, 2021). It is reflecting the real “cost of funds the borrower, however, no generally used I deriving cost”. it helps the “fact in perspective that investment should first be volute for whether it would help retain the purchasing power of investment before one even begins to think of actual profits”.
Additionally, I have learned more about the journal of economic perspective and how it could work, global business and corporate governance environment, International financial management, handbook of the exchange rate, beyond the measurement of employment and underemployment, circular flow diagram, etc (Madura, 2020). In these particular chapters, I have learned more and understood more details like how they are actually working and their differences as well as the impact of this individual performance in the global environment of business, and how it could help in any organization.
I have learned so many aspects of the international business environment, how a business expands its corporation in a new country. I also have learned about the global market conditions as well as the factors that affect the international market when a company wants to expand its business in a new country. There are many influencers that influence a business to take in a global range. I also have gained knowledge about the globalization concept, by the aspects of international business environment I have gained overall knowledge about the international business operations. This learning will be an extra advantage for my future and it will add an extra advantage to my career. International financial management and international economics give me a greater view of international financial systems and the global economic condition.
Reflection On Global Environment of Business and The Nature of Multinational Corporation
The “Global business environment” can be defined as an “environment in different sovereign countries”. “Global business can be confidential in the external and internal environment”; the “external environment depends on political factors, legal factors, economic factors, cultural factors, and technological environment” (Radovi?-Markovi?, Salamzadeh and Vuji?i?, 2019). “Companies operating internationally must understand the social environment of the host country they are operating in”. Global environment businesses “import essential production items sell to local and international buyers depending on the global environment”, which helps for more fluctuating business purposes and influences how a business operates. (Khofiyah, Sutopo and Ardiansyah, 2020) Global business is more beneficial for an organization, and on the other side multinational corporation has “facilities and other assets in at least one country other than its home country. It generally has an office and factories in different types of countries and a centralization a head office where they coordinate global management”.
After that in my thought, if the Global environment of business applies in any business strategy that the business can be risky but it is helpful for any business like, business products sell in different types of countries and the products expand more countries as well as they have achieved more customers and it helps to improve business plan, side by side they have some difficulties are their like high level of competitors facing geographical problems.
Additionally, Multinational corporations expand their business in one more country and “it has a positive economic effect on the country where the business is taking place” if any company is a multinational company, they have more advantages and disadvantages also (Reinecke and Donaghey, 2021). Multinational corporations provide an inflow of capital source of “capital inflow” to the building factories, developing world, training centres, and supportive educational opportunists with the focus of increasing their activities (McMaster et al., 2020).
They have also provided local employment, which means if I step outside of the developing world for a moment, the benefits of this type of company are do not needed outside countries’ employees they actually have particular area based on particular employees. This corporation encourages more innovation as well as “multinational corporation increase cultural awareness” most multinational companies depend on some vendors because the companies use them for sales of their products and it helps their business become larger (Cooke et al., 2019) If they are a failure so time the companies change their vendors and resell their products with the new areas and new customers after that companies focus on the product that can be sold at a minimum and affordable price.
But, side by side some disadvantages are there the multinational companies create a higher level of the environmental cost it means if the company is a multinational corporation so that the companies sell their product different counties, that’s why the multinational corporation facing a huge amount of cost like different countries different types of tax amount different types of import and export cost different types of pricing cost, etc overall create a huge amount of environment cost. “Multinational corporations build legal monopolies”
In this area, I learned about what is the global business environment and Multinational Corporation, how it works functionally, and also what is their advantages and disadvantages if any organization apply these functions.
Reflection on How Environmental Factors Impacting the Decision-making Process for Expanding Business in a New International market
International Environment is concerned with the global market, it influences the global market. International Business Environment is the neighbouring area of a business that influences the business globally and helps businesses to know about the environmental factors that can be a good advantage for a business (Watson et al., 2018) International Business Environment influences the businesses as well as it also impacts the decision making of a business in the time of expanding the business
(Nambisan, Zahra and Luo, 2019). There are several factors that affect the international businesses,
- “Legal Factors”
- “Political Factors”
- “Technological Factors”
- “Economic Factors”
- “Social Factors”
- “Environmental Factors”
All “international businesses” have to maintain legal deals with the countries where they operate their businesses. So, if a business wants to expand their business in another country or something like that then the company must undergo the legal terms of the country where they want to expand the business (Kulish et al., 2018). All countries have different legal policies and that must be covered by the business organizations. If a country’s legal policies are good for the business organization, then organizations expand their business in that country.
Political factor is another factor that affects international business, it can facilitate a business similarly it also can hinder a business. If the stability of the government, foreign trade regulations and many more things are standard in a country then there is no issue with political factors to expand business there (Kozubikova et al., 2019) As I have learned if the political factor is in a standard position, then I will expand business there undoubtedly.
In Australia technology is advanced, it is also a forward-thinking country if a business wants to expand their business in Australia, then the technology factor will always be an advantage to expanding business there (Thakur and Mangla, 2019). In terms of technology if I have a business that I want to expand then I will expand my business in Australia. Technology factors influence international business and also impact in case of expanding a business in a new international market.
There are several economic factors that influence international business and they also impact expanding business in a new country like:
Fiscal policy impacts the economy of a country and it will influence business organizations to expand business there and it also affects international business. As well as inflation rates also influence the business organization and also affect international business. Interest rate is also another thing that affects international business, it also influences businesses to run their operation in a country (Humbatova and Hajiyev, 2019). There are also a few other factors of economic like Employment Level, Distribution of Income, Allocation of Government Budget, Demand for various products and Value of currency of the country, etc. which influence international business. For this purpose, also businesses influence and expand their business in a country by thinking about economic factors.
The culture of a country also impacts international business, people’s behaviour, and lifestyle influence businesses to expand their business in a country (Ajmal et al., 2018). Social Factor is another factor that can facilitate a business as well as it can hinder a business.
The environmental factor is the major factor that impacts global business it is maybe a significant issue in global business in the previous few years (Koval et al., 2019). There are several factors like climate change, and weather, that effects global business and it also influences business expansion.
As I have learned I figured out that to expand a business there are several factors that influence international business. A business needs to focus on these factors for expanding business, in terms of Australia, if I have a business that is going to expand, I will expand the business in Australia undoubtedly because the all factors that need for running a business successfully are there in Australia like technology, legal, political, etc (Koval et al., 2019).
Summarisation Of the Academic Knowledge
All over study I learned about some chapters like a measure of the level of price of the economy, types of rate like nominal rate and real interest rate, “international financial management” is known as international finance, international economic rate, global business and corporate governance environment in this management “international business environment it is trading and makes money through the exchange rate of foreign currency and their future goals are wealth maximization of shareholders, profit maximization”, Foreign exchange risk management, proper tax management, effect vibe inflation risk management, optimum rate of interest and etc.
International finance management has more factors like PPP (purchasing power parity) purchasing power parity is defined as the same goods and their price is equal in different types of countries which are determined goods pieces and this source organized by the University of Pennsylvania United Nation, 1968 and this program all known as International Conversing Program and there is some limitation like Transportation, Taxation, Market Competition, and etc, IRP (Interest Rate of Parity), Interest Rate of Parity is a maintain different countries have equal interest rate but different types of countries have different types of interest rate least of this resource not possible make an equal interest rate for different countries.
Another side that I have learned about environmental factors which are affecting environmental business-like “social factors” if the social factors are good in any organization and the companies involve some social working and maintain social factors, it is helps any organization to build up their goals and achieve their destination. “technological factors” if any companies totally based on technological function so that this organization needed better technology to use their organization and if the organization used better or high quality technologies so finally organization better way in work and quickly also, it is measure the organization generate a more profit and clearly achieve their motive which are totally depend on particular organization , “political factors” in this case if any organization properly run their business in any countries and this particular countries has different types of political factors if any organization maintain political rules and regulation ,the organization facing some of political factor. Legal factors and etc.
Overall factors help to manage the environmental business, and how could they work in any organization, after that I have understood global Environmental business and multinational corporation, global environmental business known as a business which is totally based on overall global areas it works their local product sell with buyers and expand their product and its totally global-based and another side multinational corporation this types of companies based on one main centre and there are different centres are different areas. A multinational corporation sells its products in different countries and increases its product chain. There are more advantages and some disadvantages.
In this study, International Business Environment can influence a business to expand in a new country, it also influences the global business. International Business Environment is concerned with the global. I have learned so many aspects of the international business environment that helps an organization to run smoothly, and this aspect will be helpful for me in my future days. The process of “expanding a business in a new country needs to be carried out carefully”. The company needs “to do a proper analysis” of “capital development, economic, political, cultural, and legal stability” and “no need to do an analysis of the risk involved in the country”. Most of the countries had risks in the past years so previous data can’t decide the future, the investment of the international business by the company can bring changes in the country. Then the country becomes economically stable, so thinking about previous data is not a good way when a business going for expanding. The expansion of business in a new country can increase employability in the country that increases the consumption power of the people.
International business is the most profitable business. International business contributes to the economy of the country so that the government of the country will give more security and relaxation in law to the business. I have figured out all aspects of the international business environment, though it gives me extra knowledge about the global market and international business operations. I have learned international financial management which means international finance and I also have learned the global business, corporate governance environment, international economics, Multinational corporation, goals and growth of multinational corporations, macroeconomics, and Inflation finance. Determination of exchange rate etc. This learning gives me a broader knowledge about the international business environment and global business, global financial systems, etc.
Expanding a business in another country is an advantage for the company as well as for the country that can boost the economy of that country. Global business aspects are really informative and this study is a learning approach that helps me in the future. I also have gained some knowledge about multinational corporations. International business can generate the efficiency of a country and makes more productive organizations. International business is classified into two parts one is the internal business environment and another one is the external business environment. Though this study is too knowledgeable and informative, it also gives me a broader idea about global business opportunities.
Ajmal, M.M., Khan, M., Hussain, M. and Helo, P., 2018. Conceptualizing and incorporating social sustainability in the business world. International Journal of Sustainable Development & World Ecology, 25(4), pp.327-339.
Cochrane, J.H., 2019. The fiscal theory of the price level. Manuscript. URL https://faculty. chicagobooth. edu/john. cochrane.
Cooke, F.L., Liu, M., Liu, L.A. and Chen, C.C., 2019. Human resource management and industrial relations in multinational corporations in and from China: Challenges and new insights. Human Resource Management, 58(5), pp.455-471.
Ghauri, P., Strange, R. and Cooke, F.L., 2021. Research on international business: The new realities. International Business Review, 30(2), p.101794.
Humbatova, S.I. and Hajiyev, N.Q.O., 2019. Oil factor in economic development. Energies, 12(8), p.1573.
Jahanger, A., Usman, M. and Ahmad, P., 2022. A step towards sustainable path: the effect of globalization on China’s carbon productivity from panel threshold approach. Environmental Science and Pollution Research, 29(6), pp.8353-8368.
Khofiyah, N.A., Sutopo, W. and Ardiansyah, R., 2020. Global Business Strategy for Commercializing a Technology of Drone: A Lesson Learned from DJI Drones and Parrot Drones. In Proceedings of the 5th NA International Conference on Industrial Engineering and Operations Management Detroit (pp. 10-14).
Koval, V., Mykhno, Y., Antonova, L., Plekhanov, D. and Bondar, V., 2019. Analysis of environmental factors’ effect on the development of tourism. Journal of Geology, Geography and Geoecology, 28(3), pp.445-456.
Kozubikova, L., Kotaskova, A., Dvorský, J. and Klju?nikov, A., 2019. The impact of political factors' perception on suitability of international business environment: The case of startups. Economics & Sociology.
Kulish, A., Petrushenko, M., Reznik, O. and Kiselyova, E., 2018. The relations unshadowing in business activities: The economic and legal factors of security at the macroeconomic level. Problems and Perspectives in Management, 16(1), pp.428-436.
Madura, J., 2020. International financial management. Cengage Learning.
McMaster, M., Nettleton, C., Tom, C., Xu, B., Cao, C. and Qiao, P., 2020. Risk management: Rethinking fashion supply chain management for multinational corporations in light of the COVID-19 outbreak. Journal of Risk and Financial Management, 13(8), p.173.
Möller, K., Nenonen, S. and Storbacka, K., 2020. Networks, ecosystems, fields, market systems? Making sense of the business environment. Industrial Marketing Management, 90, pp.380-399.
Nambisan, S., Zahra, S.A. and Luo, Y., 2019. Global platforms and ecosystems: Implications for international business theories. Journal of International Business Studies, 50(9), pp.1464-1486.
Papetti, A., 2021. Demographics and the natural real interest rate: historical and projected paths for the euro area. Journal of Economic Dynamics and Control, 132, p.104209.
Radovi?-Markovi?, M., Salamzadeh, A. and Vuji?i?, S., 2019. Selection of organization models and creation of competences of the employed people for the sake of competitiveness growth in global business environment. International Review, (1-2), pp.64-71.
Reinecke, J. and Donaghey, J., 2021. Political CSR at the coalface–The roles and contradictions of multinational corporations in developing workplace dialogue. Journal of Management Studies, 58(2), pp.457-486.
Thakur, V. and Mangla, S.K., 2019. Change management for sustainability: Evaluating the role of human, operational and technological factors in leading Indian firms in home appliances sector. Journal of cleaner production, 213, pp.847-862.
Watson IV, G.F., Weaven, S., Perkins, H., Sardana, D. and Palmatier, R.W., 2018. International market entry strategies: Relational, digital, and hybrid approaches. Journal of International Marketing, 26(1), pp.30-60.