INTERNATIONAL BUSINESS ENVIRONMENT

The Impact Of Global Factors And International Business Environments And The International Business Environment On Organisational Performance

Table of Contents

Introduction4

Discussion4

International Business Structure6

Competition7

Environmental Global factors and international business environments10

Contracts13

Intellectual Property14

Liability14

Finance14

Employment and Labor Forces15

Cultural Issues17

Technology20

Conclusion21

References22

List of Tables

Table 1: Internet Users 1996-20025

Table 2: Top Revenue Earners from the Global Fortune 500 (in billions of US$) Nations/States vs. Transnational Corporations9

Table 3: Hofstede's 5 Cultural Dimensions18

The Impact Of Global Factors And International Business Environments And The International Business Environment On Organisational Performance

Introduction

Global factors and international business environments and international business environment are progressively glimpsed as key determinants of the borrowing costs of appearing finances ? and for good reason. (Punnett and Ricks 1997) During the 1990s and early 2000s ? numerous businesses took benefit of a world market that was progressively open to international expansion and trade. (Holt 2001) Obstacles to free trade were alleviated through the General Agreement on Tariffs and Trade (GATT) ? the North American Free Trade Agreement (NAFTA) ? and the Association of South East Asian Nations (ASEAN).

Discussion

Economies opened ? and due to technological expansion in connection ? transport ? and investment ? there were fewer adversities with the functional matters of carrying out business over nationwide borders. (Holt 2001) In relation to the global factors and international business environments ? communications expertise displayed exponential development; encompassing innovations that facilitated doing business any location at anytime ? (Hjelt 2004) for example isolated get access to and snare conferencing.

As shown in Table 1 ? the number of Internet users in the world increased from 30 million to over 562 million over six years ? and by 2002 nearly 10 per hundred of the world community utilised the Internet.

Table 1: Internet Users 1996-2002

Year

Internet Users (millions)

Internet Users a Percentage of World Population

Jan 1996

30

.73

Jan 1997

57

1.41

Jan 1998

102

2.49

Jan 1999

153.5

3.75

Jan 2000

254.29

4.27

Jan 2001

455.55

7.5

Jan 2002

562.47

9.43

Accompanying all of these alterations was a boost in need for international administration for persons who realise global factors and international business environments well sufficient to organise and augment an international business effectively. Among those global and international business environments factors are:

International Business Structure

Competition

Political and financial environments

Finance and business matters such as agreements ? taxation ? thoughtful house ? and risk

Employment and leadership

Cultural norms and values

Technology (Harris 2000)

International Business Structure

An international supervisor has the task of reopening business in a fundamentally distinct environment. He or she should work out the general structure of the business and its workflow. In a functional-based business (i.e. ? the new position desires to be adept to perform normalized jobs that obey with general business practices) ? (Deresky 2003) accomplished work and proficiency to perform these jobs is key.

Technological infrastructure could be a vital factor. For an area-based business ? position is the key ? and comprehensive information of the homeland and its heritage is critical. Products may have to be acclimatized to the owner market.

A global-based structure may have a diverse set of merchandise lines ? each of which can be made and sold over locations. These advances can be blended ? but selecting the structure of the business ...