GLOBAL ENVIRONMENT OF BUSINESS

Global Environment of Business

Global Environment of Business

Introduction

Globalization is a term that has, in many instances, come to replace the older and no less complex notion of “development.” In fact, globalization, has replaced the term development as the new action word of contemporary international governance discourse(Bell, 2004, pp. 23- 56).

Economic Issues Arise During Global Expansion

Policies associated with the categories of aggression and security (in the concept of Carl Schmitt - the categories of "enemy", and (secondarily) "friend"), while the economy - the production and wealth. The increasing competition among nations switches focus companies on the area of economic competition, which sets the criteria themselves competition (Agarwal, 2003, pp. 68-83).

Economic rationality begins to dominate the political. The policy does not create wealth and economic growth, but can only encourage him. Together with the liberalization of thinking begin much more keenly aware of the obstacles that bureaucrats have traditionally erects in the way of economic growth, politics by its nature to think in terms of redistribution of national product, rather than create it. In the new civilization of the situation a crisis of values have not only the post-socialist countries in which the political consciousness of the first principle was dominant in order to contain the economic, but also "social country," in which "social" was considered as a function of the capitalist economy (Ahuja, 2008, pp. 1-98).

Political Issues Arise During Global Expansion

The political issues are those issues which are related to the political conditions of the country, and these political issues affect the business of the multinational companies. There are many political issues that arise during the globalization process of the Multinational companies (Achrol, 1988, pp. 25, 35-50).. It includes the stability of the government and change in the government policies related to business (Bartholomew, 2006, pp. 83-96).. All these factors affect the business to expand globally; it will become difficult for the companies to start their business operations in the international markets due to these related political issues (Acs, 2005, pp. 323-334).

Major Risks and Issues

The risk is present in any act contingent or uncertain, and as such is only possible to estimate the probability of occurrence and make a prediction that, therefore, be inaccurate. The concept of risk in the financial sector can be classified in many ways, each of which causes particular theories and analysis and also different. And defines certain risks, market the systems, finance, insolvency, operational, and a number of other risks that affect financial decisions they can make different economic agents (Barney, 1991, pp. 99-120). Thus, the investor or shareholder would want to know all the details related to the risks to decision-making regarding the future profitability of the company (Barringer, 1999, pp. 421-444).

The Business Environment

                  The environment can present opportunities and risks. Be defined as opportunities such as: the set of circumstances, accompanied by a good chance of success in these opportunities. In the same way we remember the risk as "The Possibility of an event that has an impact on the achievement ...