Challenges in Global Business Environment

Introduction

Business environment is a phrase consists of two words “business and environment” business is a human activity of production, sales or purchase of goods, excretion to earn profits. In addition phrase environment means aspects of surroundings. Business environment is constantly changing, it is compound in nature, and there is different environment for different industries. Business environment had long-term as well as short term impact on the economy.

The companies need to evaluate their financial stability that the company has a sufficient financial fund to develop its operations into the new market that they are going to enter, and also it is important for the company to check that if they had enough funds to expand their business in the long run. Expanding your business locally is not so difficult but the expansion of a business globally is a difficult task which requires enough capital, to expand its operation in the international markets.

Finance

The organizations or the multinational companies are facing different kinds of issues related to the global expansions, the crisis facing by the world's economy is creating problems in the development process of the companies, and all the economic factors affecting the performance of the companies must be taken in consideration before taking any decision about expanding the company globally. The issues which are related to the difference in the values and individual choices and other societal choices, and these differences give rise to the conflicts. These economic issues can be resolved by giving importance to the issue and taking preventive measures to resolve those issues (Yongxiu, 171-175). Together with the globalization of the economy began to change the whole constellation of values, demanded policies. Development of deliberative policy raises the status of civil society and reduces the credibility of volitional decisions of the government. Policies associated with the categories of aggression and security (in the concept of Carl Schmitt - the categories of "enemy", and (secondarily) "friend"), while the economy - the production and wealth. The increasing competition among nations switches focus companies on the area of economic competition, which sets the criteria themselves competition.

Economic rationality begins to dominate the political. The policy does not create wealth and economic growth, but can only encourage him. Together with the liberalization of thinking begin much more keenly aware of the obstacles that bureaucrats have traditionally erects in the way of economic growth, politics by its nature to think in terms of redistribution of national product, rather than create it. In the new civilization of the situation a crisis of values have not only the post-socialist countries in which the political consciousness of the first principle was dominant in order to contain the economic, but also "social country," in which "social" was considered as a function of the capitalist economy (Yeung, 51-74).

Economy is affected by both profit and nonprofit organization, they play very important role in the economy. Profit organizations measures return to risk when they invest, they invest in any operation to have returned, Entrepreneurs of profit organization ...