Todays business environment Essay Example | Topics and Well Written Essays - 2000 words

Todays business environment - Essay Example The new external factors are new people, their culture, society, language, political system, work habits, social system, regulatory system, and taxes legal and technological base. Legislations and government rules and laws determine the political environment of the new country. Every country in the world follows its own system under the sovereign rule and the company who enters into that country has to follow those laws and systems. Economic environment is also different in that country because economic requirement, financial system export/ import requirements may be different to those in the domestic country Technological base and the work environment may be different .The internal variables in the new country may be absolutely different and the company entering into that country has to adjust to those variables as quickly as possible to be successful. There may be many threats and responsibilities posed by the new system and environment that has to be answered by the new entrant. T he major factors that bring in changes in the host economy are: The first and foremost consideration before entering into a new country is to assess the economic benefits of investment in that country. Whether the project is profitable in the long run or whether it is sustainable in the new circumstances and environment or whether the new investment in that country is free from undue risk are to be considered and answered before The debt possibilities and structure in the new country must be assessed deeply before the strategic move. The impact of debt on global corporation whether personal, corporate private or public may be very high sometimes. The best time to enter into a new country is the time of rising cycle of the business. It is possible to understand the up trends in the economy and enter in to that country in the best opportune time. The advantage of doing so is to avoid getting the investment into loss and ensure good returns in booming period in the economy. Recent examples are the two booming economies in Asia-India and China. Many multinational companies found the way into china for last decade or more and made their investment yield high returns. Similarly from 2003 Indian economy also started raising its head and many foreign companies entered into this country in Automobile, consumer, electronics, infrastructure and information technology sector. On the opposite many Indian companies also have their openings into other countries as takeover or into Greenfield projects. High debt symptom is to be studies carefully before deciding about new investments in foreign courtiers. High level of debts is an economic indicator that might put the economy into danger zone. For example USA, which is running in trillion-dollar debt, is a bad indicator for investors from outside. High level of de