Global Environment Review



Global Environment Review

Introduction

Today, business world become highly competitive, which makes it more complex and difficult for business owners to start a new business or expand business across global markets. Businesses become more cautious and carry out international environmental scans before entering a new market. For instance, as a response to global financial crisis 2008, several countries across the globe are interested in reforms and policies to promote the creation of new firms. In United States, policymakers have called for governmental support to help US in regaining competitiveness in the global business environment.

The aim of this paper is to review the global business environment of four different countries, namely, India, China, Brazil and Indonesia. This paper compares and contrasts the global environment of these countries in terms of demographics, overall economic situation, ethical concerns, relations with US and surrounding countries, and international trade organization membership. Later section of this paper offers a business idea based on the environment, as well as projects a five-year business plan.

Discussion

Brazil, Russia, India and China (BRIC) countries are emerging markets that offer a vast opportunity for US businesses, but there are also specific and significant risks associated with these countries. In order to examine the opportunities and risks that BRIC countries offer to US companies necessitate global environmental scan of these markets, together with a tap into the growth and development of their markets. Looking for business opportunities can be an excellent mean to build a business because BRIC nations often demonstrate the fastest economic development. Briefly, these countries have attractive markets for business penetration.

Brazil

Demographics

Brazil is the most populous and largest country in South America. The country has dense forest, a long coastal plain, sprawling wetlands, immense plateaus, pine forests, rugged hills and dry grasslands. Brazil has a population of about 198,656,019 people till 2012. The median age of people in Brazil is 29.6 years. The structure of the population was determined by migrant structure. Brazilians trace their origins from Asian, African, European and Amerindians. The official language of the country is Portuguese while English is also taught at educational institutions. Approximately 70% of Brazilians are Roman Catholics; whereas, Shamanism, Sikhism, Hinduism and Daoism are also followed across Brazil (Baer, 2008).

Economic Situation

Brazil is the seventh richest economy of the world. The overall macroeconomic framework of Brazil is suitable for doing business. Brazil has a stable growth of economy, lower rates of inflation (5.4%) that improves social wellbeing of people. Brazil accounted a GDP of $2,252,664,120,777 in 2012. The country reported poverty of about 21.4% and unemployment is relatively low in Brazil to about 5.5%, in 2012 (www.cia.gov).

Ethical Concern

Brazil encountered several cases of alleged corruption pursued by several political leaders who had vowed to clean up the political process of Brazil. In Brazil, US businesses might find it difficult to deal with potential ethical concerns, such as corruption. Currently, there are several global businesses operating in Brazil might have self-enforcement and policies of anticorruption ...