REVIEW

The Physical And Environmental Strength In International

Business

“What is the strategic importance of Indian Ocean Region? learn

its Geography, Trade & Strategic Imp.”

By:

ADELIA - 180413620628

UNIVERSITAS NEGERI MALANG

FACULTY OF ECONOMICS
MAJOR OF MANAGEMENT
MANAGEMENT STUDY PROGRAM
 2020
A. Preliminary
In this chapter we study about the physical and environmental strength in
international business. The most important reason for considering physical elements as
uncontrollable forces is that they have many aspects of foreign environmental strength.
This is how businesses will then have to adjust their strategies to compensate for the
differences between markets and their physical strength, just as they do for other forces
that cannot be controlled. So, there’s a many element of this theory, some elements that
are relevant for physical and environmental strength in international business are
location, topography, climate, and natural resources.

B. The Review
As the third largest body of water in the world, and containing vital sea lanes that
help feed some of Asia's largest economies, the importance of the Indian Ocean has long
been clear. Indian history itself is derived from the name of the country namely India,
where its history is India is a trade center which is the center of the arrival of Europeans.
Ocean flow in the Indian Ocean is considered to be one of the most strategic and
important in the world - according to the Journal of the Ocean Ocean Region, more than
80 percent of oil trade in the world's seas through oil transit through the Indian Ocean
choke points, with 40 percent passing through The Strait of Hormuz, 35 percent through
the Strait of Malacca and 8 percent through the Strait of Bab el-Mandab.
Actually the Indian Ocean is not just about sea lanes and trade. Many of the world's
armed conflicts today are even more than half located in the Indian Ocean region, while
the waters are also home to growing strategic developments including increased
competition between China and India, potential nuclear confrontations between India and
Pakistan, US intervention in Iraq and Afghanistan, terrorism Islam, increasing incidences
of piracy in and around the Horn of Africa, and diminishing management of fisheries
resources.
Sea routes across the Indian Ocean are very important routes in the world economy.
One of them is the country in the Middle East which is the largest contributor to oil
imports by contributing 40% of total world oil production. This also makes the Middle
Eastern countries such as Saudi Arabia to build trade alliances with allies for the security
of this trade route process, considering that oil is their main income. And if there is a
disturbance in the world oil trade, it will also affect the world oil price. In its journey, the
trade route has various routes connecting one country's trade with other countries. In
addition, these countries also built military bases to protect the strategic interests of the
brand.
China and India are growing rapidly, those who share the aspirations of superpowers,
are becoming increasingly hungry for energy, and there is a real potential for conflict
when the two giants try to feed their economic growth and expand their influence. Energy
security, and resources are very important. The Indian Ocean region is very rich in that,
and therefore all developing societies need access to new materials produced around the
coast of the Indian Ocean. In the long run the Indian Ocean will become significantly
more significant in global politics than ever before, and it is the majority function that the
Asia-Pacific region is significantly larger.