Global Business Environment The Global business environment its

Global Business Environment The Global business environment & its components

What is GBE? Global business environment can be defined as: – – – the environment in different sovereign countries, with factors exogenous to the home environment of the organization, influencing decision making on resource use and capabilities.

Factors of GBE – – – Economic environment; Political environment; Legal environment; Social and cultural environment; Technological environment; Tax environment.

Economic environment – – – The changing nature of international business/trade in historical perspective, Changing world output and world trade; International institutions; International monetary environment, financial flows, Foreign Direct Investment (FDI) trends; Business cycles; Development and competitiveness indicators; Economic integration; Global problems; Economic Risk

Political environment – – – – Rule of law; Interaction between politics and business environment; Government and international bureaucracies; National and international legislative bodies; Public opinion, civil society, interest groups; Transnational corporations (TNCs); Global churches; Political Risk

Social and cultural environment – – – – Income disparities; Health and education system, level of knowledge; Population trends, Aging; Labour market; Family; Functions of family; Family life cycle Religion and international business; Values and attitudes and international business; Influence of culture on consumption.

Legal environment – – – Tariffs, subsidies, non-tariff barriers; Taxes, double taxation; International regulatory bodies (Bretton Woods institutions, institutions of integrations, international banks); Foreign investment regulation; Litigation and dispute settlement.

Technological environment – – Economic theories on technological development; Technology cycles; Adoption of technology in companies; global production networks; The choice of Technologies to develop.