Vol. 2(11), 34-38, November (2013)
Res. J. Management Sci.
International Business Environment: Challenges and Changes
Administrative-cum-Accounts Officer & Head of Office, Sardar Swaran Singh National Institute of Renewable Energy
Ministry of New and Renewable Energy, Govt. of India, Wadala Kalan, Kapurthala, Punjab, INDIA
Available online at: www.isca.in, www.isca.me
Received 3rd July 2013, revised 25th August 2013, accepted 26th October 2013
In the twenty first century, Business Environment is becoming more complex, interdependent and dynamic. Managements have to restructure their strategies and management styles according to the regions of the world, they are operating in. The typical challenges that managements face are political, economic and cultural changes along with advancement in technology. In addition to the vast opportunities while operating in global community, it is also associated with relative high risks and the projected return on investments in the global market. Business Environment risk has increased obligations of managements to improve their ability to develop, produce and market global brands. To compete aggressively, organizations have to make considerable investments globally, not only capital investment but also human resource investment like trained managers, skilled workforce to operate effectively in a multicultural environment. Managements are focusing to become accustomed to global environment change and attain new capabilities, in job skills, modes of learning, management approaches and research efforts. Managing political and economic risk is a challenge for multinational organizations, they have to maintain an up to date profile of countries they are operating in. Global operations of organizations are also associated with social responsibility, ethical behaviour and interdependence which directly affect their sustainability and profitability. The ethical challenge that globalization presents is political and economic freedom, that is essential for the development of any society, but human resource development is critical in developing these capabilities. Due to interdependent nature of developing economies the global organizations must set high ethical norms and lay the groundwork for future economic development by cooperating with social, political and economic conditions prevailing in the regions they are operating in.
Keywords: Business environment, global brands, business environment risk, globalization, ethical norms.
The word global means "spread throughout the world".
Globalization means the companies, the regions, the nations and the continents are struggling to attract business investments. The term globalization means that the phenomenon of evolutionary transition to a new stage of contemporary society in terms of the economic system, socio-political or cultural. Globalization refers to the social and economic development relationships that extend throughout the world. The East Asian Economic Miracle represented rapid economic growth of East Asian Counties like
Japan, Taiwan, Hong Kong and Singapore, from 1960 to 1980, played a significant role towards global business approach.
Despite poor political system and old egalitarian society these countries achieved high economic growth. This miracle motivated many countries and organizations to operate their business globally so as to follow the path for development.
International Business is commercial transaction i.e. sales, investments and transportation, between two or more countries.
In this modern world of globalization, liberalization and privatization, its importance has increased due to increase in multinational organizations worldwide. It has great contribution in developing economies because it has stimulated business organizations to grow worldwide and enabled business organizations to…