global expansion management

Global expansion management

Trent Prather

AIU

26th July 2015

Global expansion management

This paper contains political and economic issues which influences global expansion of a company. Expansion in a business therefore involves an increase in the scale of the company. Politics affects all the business around the world. There are most important political issues faced when carrying out business across borders.

Stability of government policies is a major issue determining the survival of a business. Government should offer good environment for a business to thrive and for it to be firm. Factors which may bring instability may be changes in ruling political parties, extreme nationalism and trade disputes. Due to political instability a company may face political sanctions, violence, cybercrime and domestication when doing business internationally (Philip, 2009).

By understanding how the government may influence your business helps to take risk and identify the threats that may affect the business.it is also important to understand that those products with high priority may have more restrictions in the country, the marketer therefore should engage in business ventures that bring benefit to them ( Philip , 2009)

Legal environment. These are the rules one should play by like commercial legal system and civil law found in France. There are 3 types of legal disputes; those between governments, between company and government and between two companies. To solve legal issues therefore should be directed on basis of jurisdictional clauses, where the contract was entered into and where the provisions of the contract were performed (Helsen, 2007).

Economic issues

Poverty.

Poverty and globalization are indirect related due to rising inequality and the poor does not share the gains from the trade. Poverty is also witnessed in the countries which lack skilled personnel. This acts as a draw back to the economic growth of a country. Globalization therefore produces both the winners and losers among the poor. It is evidenced that the relationship between globalization and poverty is not about finance only but also on economic environment. The marketers need technical assistance and macroeconomic stability in exchange rates. Poverty in globalization yields much implication in those poor countries exporting goods and services to those developing countries (Philip, 2007).

In order to address this issue, people need to be educated, infrastructure should be improved and the expansion should be reformed (Philip, 2007).

Corruption

This has been a major issue resulting to poverty around the world. Corruption is evidenced in all levels; small and large business. Corruption undermines all development including political and economic. Corruption has a serious impact not only to the global trade but also to the society. Unequal trade agreements and free trade agreements leads to poverty ( Helsen, 2007).

Importance and implications of political and economic issues

The involvement of government in business is vital in different level s. government is crucial for protection of the business and provision of capital. Government also provides restriction to those businesses which might bring harm to a country. The state is also important in provision of motives for internationalization of the business (Philip, 2009).

When public spending raises there is high injection of income flowing into the business. The government has effects on taxation, interest rates, exchange rates and public private partnerships (Helsen, 2007).

This has been evidenced in France whereby the country has financed their industries and provided education to those unskilled people.

The business should care about legal environment. All businesses must abide by the rules and regulations set by a certain country. There are restrictions a country sets and for globalization to expand the restrictions must be obeyed. The online buying and selling has made it easier for business to continue but some countries are able to regulate their rules. Due to this global business is able to regulate the legal climate in the operating countries (Helsen, 2007).

Legal environments have a very important impact on the global business. They govern what operates in and outside the country. These rules also protect human rights as witnessed in France where restrictions have been set strategies to be followed ( Helsen, 2007).

Corruption and poverty has a drawback to countries economy. Global business has contributed in reducing poverty in the world. France has educated people on the dangers of corruption but as its seen on US it has better strategies on handling corruption (Philip, 2009)

An expanding and changing economy is witnessed in USA. The state has rested her expansion on the stability of the strong navy and having imperialism policy. Henry H. (2009). Changes started to occur after the policy was formulated and executed. This brought stability in the state which promoted the standards of the business which lead to great expansion (Henry, 2009).

In conclusion, above discussed issues have a great impact on the global expansion of a business and unless they are well managed the can lead to great loss in a business

References Philip,R.(2009).GlobalMarketingManagement.

Kristian, H. (2009). International marketing.

Harrison, H. (2009). International Government strategy. US.