Forces in International Business Research Paper

Forces in International Business - Research Paper Example The business environment is indeed inundated with waves of issues that totally define the nature of operations. This mix translates to what is referred to as the business environment. The forces that define the business environment normally range in various aspects as can be realized in the modern age. Some of these factors can be controlled by the business whereas others are beyond the manipulation of the business. These factors are the core subject matter in this essay. It seeks to address how the external environmental forces influence operations. FORCES IN INTERNATIONAL BUSINESS Introduction The modern business environment is defined by myriad factors that vitally influence the operations of all players in market. ... In most cases, some of these factors affect the organizations directly while others impact indirectly on the organizations. In that manner, the modern business environment is classified into; internal environment, operational environment and external environment. The first two classifications are normally a function of the organization’s own operations and can therefore be influenced whereas the external environmental factors are broad in scope and cannot easily be manipulated by the operations. Economic environment The economic business environment usually refers to the combination of the nature of economic system prevailing in the country of operations, the anatomical structure of the economy in terms of economic policies, the government’s regulation of the capital markets and such other factors as the socio-economic infrastructure. Such market situations are normally great determinants of the success or failure of entirely all organizations (Becker, 2001). In any cas e, a supportive economic environment is the best condition an organization may imagine. Most multinationals today operate in entirely different economic systems from their home countries and are as such usually compelled to adapt to the conditionality in existence. In many countries, governments in place have tried to promote investment activities though the creation of favorable economic environments that support the operations of investors. The economic systems in many countries differ in many respects and this has a great influence on investment viability. The economic systems in the Eastern countries are totally different from the systems in the Western economies.