The Global Environment

The term 'Global environment' refers to the overarching

environment in which a company operates. This concept includes
a broad range of factors that can influence a business, including
geographic location, politics, technology, culture, and the
economic status of the global environment

2.5.1: Business Is Going Global, and Management Has To Change

We discusses why countries and corporations, both large and small, engage in
international trade. With globalization in mind, pay particular attention to the
different models and incentives for international trade and business cooperation
that are discussed in this reading. Trade deficits and surpluses affect many
aspects of our day-to-day lives. Think about how some of these determinants
might impact the business market in your own country.

2.5.2: Getting Involved in International Business

It has various challenges and opportunities encountered by companies as they

engage in international business. When a company enters the global market, the
application of management principles intensifies as the demands of stakeholders
begin to take shape. This reading provides a road map to how companies expand
internationally, emphasizing the importance of international licensing
agreements and franchising opportunities. Pay close attention to how companies
outsource manufacturing to other countries with lower costs of labor in order to
maximize profits. And keep in mind that both domestic and international
manufacturing options have advantages and disadvantages in regards to
environmental conditions, skilled labor, financial incentives, and cultural
differences.

2.5.3: The Environment of Global Business: Cultural, Economic, and

Legal

how to identify legal, political, cultural, and economic differences between two
different countries. These are considered to be invaluable skills in the
international business environment. Consider how business professionals utilize
this information in order to increase organizational success. The concepts of
language, time, and communication how to improve business environment while
managing employees, resources, and capital.

2.5.4: Managing and Controlling Global Business

Read this section, which describes the ways in which governments and
international bodies promote and regulate trade. You should be able to identify
and discuss the various tools and policies that governments typically utilize to
encourage economic growth. This information can be used by managers and
leaders to make strategic decisions, including deciding if and when a business
should expand on a global scale.
2.5.5: Managing through Trade Barriers

Read this section, which provides insight on the various ways to minimize and/or
remove trade barriers, a process that directly supports the concept of free trade
among designated nations. One example of this idea is NAFTA - or the North
American Free Trade Agreement - an agreement among the United States,
Mexico, and Canada. This reading also introduces you to initiatives that countries
and international organizations are taking to bridge the gap between developing
and developed economies, allowing rapid growth in emerging markets and
encouraging competition on a global scale.

2.5.6: Global Enterprise Management

"Global Enterprise Management" URL

Read this article and consider the following questions: How has the spread of
globalization provided growth opportunities for businesses? On the flip side, how
has globalization challenged businesses? Does the company you work for, or one
you are familiar with, implement the three management strategies mentioned in
the reading? If yes, how so? If not, do you think these strategies could help the
company excel as a global enterprise?

"Globalization and the Coca-Cola Company" URL

Read this article and consider the following questions: How important is
globalization to Coca-Cola's success? How did Coca-Cola begin its globalization
journey? What specific practices supported Coca-Cola's goal to be the best
beverage company in the world? How did Coca-Cola's global marketing
strategies, product differentiation, and technology efforts support the company's
desire to grow globally?

2.5.7: Global Management on a Local Level

The Open University: "Managing Local Practices in Global Contexts" URL

Read this section, which describes how to apply global management practices to
variations within local business contexts. To navigate to the next section, click on
the arrow key at the bottom of the page, or click on the link to the section in the
left-hand table of contents.