The challenges that international business faced today, the macro-environment explained and

highlight the changes and factors. The macro-environment factors that affect on business
which are legal, political, cultural and economic, these elements have a strong bond between
each other that can be directly or indirectly affect each others. Even though is equally
important but for this case the most relevant element that play the biggest role will be
political especially applying to developing and emerging market. Different countries in the
world have a mixture of different regimes and political environment. Countries with different
political systems and legal regulation play a different role. Political directly affect on the
economy and legal of the nation. Policies and regulations were set by the government and
every policy and regulations there are pros and cons which is very difficult for the
government to play an unbiased role in their position for whatever reason the nation come
first before economic and cultural.

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Political factors briefly explain mostly related of government interfering the nation economic
for example such as trade law, tariffs, tax and so forth. Political force is considered as the
external environment factor (Babatunde & Adebisi 2012). Political environment plays a very
vital role in the companies domestically or internationally, does not matter the organization is
large or small political factors applies to the operating activities (Caterora & Graham 1999).
China is also considered as a public action nation whereas bride is illegal but they have been
doing this for ages. Organisations that wish to expand their business overseas have study in
depth of other countries political systems of the country.

According to the Sydney Morning Herald news on 18 August 2014 “Apple, Samsung faced
tougher China market after subsidy cuts” reported by Edmond Lococo. First of all China is a
communist country, where their political situation is very unstable. China economic reforms
in the late 70s do bring more pros than cons to today China. The major change is more on to
bring the China economic to a higher standard and on the hand China try changing their
communist country to a more political stable country to grow with their economy. China does
take strong control on their communist environment and build a strong economic nation
(Blanchard & Shleifer 2001). China central government play their role to protect their nation
product refer to the news Xiaomi and Lenovo by providing subsidy to the phone producer
which produce the same quality compare to the phone industry giants (Samsung & Apple)
with a lower price by doing such action it show a great result where the giant losses out in the
sales in China, China central government did a great job to sustain their macro-economic
environment by stable their economic and political force (Clapp & Helleiner 2012). Local
phone giants (Xiaomi and Lenovo) and others local phone producer can take this opportunity
given by the government to excel their product and organisation by the help and fund from
the central government in long-term (Luthans & Doh 2012). According to Edmond Lococo,
one of the factors that central government is worry about the US technology companies given
order to spy or hack their data could be their threats, by having their own server in controlling
the encrypted data (2014). Even-though Apple claim that their do not share information to
third-party but to China central government prevention is better than cure in this case.

According to Sydney Morning Herald news on 16 September 2014 reported by Brian Robins,
“Australian export risk on China dirty coal ban.” Highlighted that Australian coal exporters
are force by China government to cut down the coal export amount, so this will cut down the
air pollution in China. The reason behind this call by China Central government the haze in
major cities had gone worse due to the ashes from coal burning (Li & Zhang 2010). Some of
the big cities for example Beijing, Shanghai and so forth had to reduced the order amount
from Australia which will caused a big losses to the Australia coal mining industry because
China is one the largest buyer in the world that had been constantly buying a big amount of
coal from the Australian coal miner industry. The policy made by China Central government
may affect on the export rate of Australia coal industry and according to expert and predicted
this policy could possible affect on half of the Australia Coal industry in the future, others
coal export countries may be affected as well their investment to emerging market such as to
market in China due to the reform of new political policy. The good side of this policy made
by the China Central government is cutting down air pollution. The negative side is the China
will have lesser energy to support the infrastructure in assisting the daily operation in China.
This macro-economic factor indirectly affect the Chinese economic force, consequences of
these are decision of other big organization who intended to invest or expand in China will
consider about this policy.