Question

• Describe what is meant by “Global Business”
• Describe the general international business environment
• Identify potential impacts of globalization on business operations
• Explain the challenges of managing operations on a global scale.

Answer 1

Answers-

Global Business- a company that operates its facilities in many countries around the world is called global business. It can also be defined as an economic activity or corporate activity taking place across different countries of the world. It refers to international trade in which products and services offered by a business reach the consumers globally.

General international business environment- the environment in which international businesses operate and communicate with each other is called general international business environment. The sum total of all external forces that create opportunities and threat can be regarded as the environment of international business. The international business environment consists of economic environment, political environment, social and cultural environment, legal and technological environment.

Following are the potential impacts of globalisation on business operations-

1) It leads to increasing competition related to cost, price, products and services, technology, market etc.

2) technological improvement is one of the main impacts of globalisation on business operations as business has to use latest technology for increasing sales and quality improvement which attract a lot of cost to company.

3) global change involve quick transfer of information and knowledge and its efficient use which is most expensive and valuable for production factor.

Challenges of managing operations on a global scale are-

1) one of the main challenge is human resource management issue which includes staffing policies related to selecting the right people, training and management development etc.

2) language understanding and learning other cultural differences is one of the major challenge for business to succeed on global level.

3) though business has to run across borders it has to consider many laws, tax rules and regulations related to trade in different countries.

4) it is quite a challenge for businesses to maintains synchronisation between technologies and increase communication with companies.