In this course, we provided an overview on how the economic, political, and lega

Question

In this course, we provided an overview on how the economic, political, and legal environments affect international business operations. For this essay, explain how the political environment affects international business operations.

For this essay, outline fiscal concerns that organizations should be aware of when conducting operations internationally. Items in this essay should include details on interest rates, global purchasing power, currency, and foreign exchange.

Culture is present in every business interaction, transaction, and decision. One can infer that if we understand a countries culture, and we consider that understanding with business planning, we can increase corporate productivity. In this essay, evaluate how culture can influence international business strategies.

For this essay, define globalization and describe the concept/process of globalization as it applies to international business. Include examples.

Explanation / Answer

1)The political environment in international business refers to a set of political factors and government activities in a foreign market that can affect a business' ability to conduct business activities in the foreign market. Degree of uncertainty faced while doing business in a foreign country is known as political risk.

Some of the political factors affecting IB are political and legal differences, trade and investment restrictions, government rules and regulations, taxation laws etc.

The political environment is important for an international business as it moves from exports to foreign direct investment (FDI) as the mode of international market entry. Exporting firms use political pressure tactics to have free exportability of the products in their home country regulations, hassle-free procedures, and legislative requirements and export incentives.Also, diplomatic channels are utilized to get improved market access for imported goods in the target foreign country markets, reduced import tariffs, compatible quality regulations, etc. The dispute settlement mechanism, legal framework, and judicial independence are also critical to fair treatment expected in international business. Political relations between the domestic country and the host country have a direct impact on business. As a firm expands internationally and begins to operate in multiple countries, the political and legal issues become increasingly complex.Type of government and market structure also plays a vital role in conducting international business.

2) Following are fiscal concers that a business should be aware of conducting business internationally: Tax regulatory environment, Interst rates, legal system, Foreign exchange management and currency risk/control, Supply chain, transfer pricing and intellectual property, Cultural compatibility, etc.

3)Culture is defined as set of values and norms and of the way a group of people live, behave and act.
The subject of culture in international business is now becoming an important agenda.Culture is part and parcel of everyone’s day-to-day live activities and one’sdecision is basically influenced by the culture that he or she is brought up in. Some of the culutral factors are language, beleif sustem, ethics and values, religion, dynamism, etc.

4) Globalization is the process of integrating world economies into a single global economy. Globalization will make it easier for a business to begin selling products internationally, since lower tariffs keep consumer prices lower and fewer restrictions when crossing borders makes it easier for a company to enter a foreign market. It also means that businesses must consider other cultures when developing their business strategies and potentially adjust the product and marketing messages if they aren't appropriate in the target country. Goods and services from

To remain competitive businesses often now have to source raw materials internationally as well as outsource their labour force to foreign shores. When venturing into a new market, it is much easier if the business forges alliances and joint ventures with local businesses. This not only gives the business the advantage of a ready market, but saves on costs as well. Gobalisation has thus helped businesses to create huge markets as well as provide a range of products which has left the consumer spoilt for choice.The volume of world trade has increased many fold since the 1950s. The opening up of economies as well as the creation of new opportunities has resulted in an increase in productive potential as well as evaporating the barriers to economic investment. The world has become a global market.any country are easily available all over the world.

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