Globally, business is affected by different factors which when coalesced form the business environment (Kolk,2016). These factors include political, legal, social and political factors. Therefore, the business environment is the total of all external forces which affect the organization and general business operation (Kolk,2016). These external forces range from customers, creditors, level of competition, government requirements, social-cultural organizations available, political parties available and international organizations. Of these forces, others affect the business directly albeit other affect business indirectly. To a large extent, the political environment of any country …show more content…
When one work in an environment that involves people from diverse culture, he or she ought to be cognizant of his or her own culture (Deresky,2017). This will help in realizing that other cultures have distinct difference thereby allowing a person to be more sensitive to their culture. Other instances, people who are older are treated with extreme reference. In business, they can ask their opinion first before serving them (Deresky,2017). Race and religion is also an important factor because there are laws that state a company cannot discriminate against any race or religion. Workplace etiquette is also another factor. The formality of address is a significant consideration when dealing with counterparts and business partners from other parts of the country. Others prefer tittle, surnames, and others first …show more content…
The living standard can grow faster since global competition and imports keep a lid on prices so inflation can less derail economic growth (Dunning,2014). Productivity increases quickly when countries produce goods and services in which they have full control thereby spur innovation with fresh ideas. On the other part, globalization has its challenges. Millions have lost jobs due to production shift abroad; others fear losing jobs especially at companies operating under competitive pressure.
In conclusion, business environment affects businesses either directly or indirectly, and it’s upon the business owners and countries concern to develop mechanisms that will culminate to mutual understandings so that business can thrive both locally and globally. Globalization is an emerging trend in business that both established and developing countries are currently