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Global Business Environment In Sovereign Nations


Global business environment is linked with a environment in different sovereign nations. Various factors include business environment which impact on making decision as per capabilities as well as resources of the company. For operating activities efficiently and effectively, enterprise have to concentrate on running at a level of international along with that they also have to understand entire social environment of particular nation. In today's times, thousands units of firms, i.e. large and small part of it. Globalisation is a concept of three dimensional like as a philosophy, a process and a phenomenon. It raise enterprise running flexibility and fast growth of local area enterprise within a future market. In this report, is a retailer of online fashion as it was established in 2006. This organisation is earning higher profits through their experiences by keeping budgeted cost of the year 16 to 24 old persons (Cantwell, Dunning and Lundan, 2010). In this assignment also describe different main factors that help in driving up of global commerce market. They has also describe various challenges which are faced by enterprise while running within a global market also about routes and barriers of internationalisati


P1 Key factors which drives global trade and  commerce

Globalisation entails by a worldwide transaction of trade integration, communication, finance and economic. It implies by applying of domestic and local enterprises within a level of international market with a purpose of wider outlook for making a free capital as well as goods. In context of enterprise, it involves modifications within an organisation which is linked in a single nation and have to operate within a various country. With this, influence of globalisation on a practices of core enterprise are divided into two different parts like as production and market globalisation. In this, globalisation in market decline barriers which sell in others nations as well as manufacturing globalisation is a source of products and raw materials from other countries for achieving higher cutting edge (Cavusgil and et. al., 2014).

Therefore, some modifications can facilities to achieve higher profitability as well as sales within a level of international market. It raise joint ventures and mergers which arrived within a large area of market. Some of various factors affect global traders and commercialisation are as follows:

Cost: It is a main thing that include in research activities, marketing, manufacturing etc. Hence, it can said that cost is enclose with a value of finance as well as make proper practices of enterprise. It is also used in producing products, something with quality and carry out them from one place to other. Global trade and commerce determine the cost of enterprise.

Direct cost: Something which is definite with a cost happen within a cost object by putting small efforts. Therefore, objects of cost are project or goods. Many of direct cost is a variables e.g. wages incurred in concrete manufacturing, gravel cost, cement and sand.  

Indirect Cost: It is which goes beyond expenses which include in manufacturing of goods by enclosing of pricing policy which is maintained by whole company. Various supplies as well as materials are needed in daily activities of enterprise is called as indirect cost.   

Impact of cost on global trade: As international trade gives opportunities to organisations to trade their products internationally. But it is generally affected due to transport and logistic costs. Since, 90% of trade in the world is done by marine transport so, due to increase in rate of fuel, shipping cost also fluctuates. Thus, increasing cost of shipping can drop international trade. Similarly, exchange in foreign currency rates also affect trade at global scale. Thus, to afford such expenses for conducting business in international market is not easy for small companies including

Market: It is a place where various transactions are made of exchanging services as well as goods. Global trade and commerce also determine companies market. Therefore, some companies directly provide their goods to customers along with that certain goods are sold by entire sellers. With this, cost of global market, value and price are traded according to supply and demand of goods. Some of key factors of markets are as follows:

Impact of market on global trade: Since main purpose of participating at global scale is to serve products worldwide. Therefore, trends of market, demand of particular products, taste and preference of customers as per different culture are some factors which affect international trade more. Therefore, any change in trend and demand of market will affect profitability of and other organisations running at small scale.

Labour markets: It is a market for those persons who are searching for a job within a country or in a particular region. In United Kingdom, various opportunities of jobs are available. It included driven up the market of global commerce and trades of country that help to achieve higher competitive edge (Colfax, Rivera and Perez, 2010).

Markets for raw materials: Raw materials and inputs is one of main substance which is utilize in manufacturing a finish products. On other side, there is having a wider raw materials which are sold or trade all over the world.

Environment: It involve with in a environment in which they run enterprise as well as activities in a effective way. Environment of enterprise is modified according to time along with that it gave a huge influence on industry operations and practices in a indirect or direct way. Hence, it is important for firms to analyse future and determine a right work contrast for managing all modifications properly. It included various aspects are as follows:  

Political factors: It is an important uncertainty source within a fashion business. In this factors entails with a taxation policy, regulations, government laws which are made by government bodies. It hinder capability of top and bottom line both of an organisation in context of its ability of customer paying and corporation taxes which are associated with income taxes.  

Economic factors: It volatility get affected by profits and sales of any enterprise. At a period of economic boom or recession, buyers cant pay much for expensive items. This factor include inflation rates, exchange rates, interest rate, people income, unemployment etc.

Social factors: Their are important social modifications are raised in past years as well as hinders fashion goods demands along with that which brand or goods they preferred. Hence, global population of demographic bring out lots of threats and opportunities to online fashion businesses.  

Technological factors: In today's times, development of enterprises is linked with latest technologies. Globalisation, utilise technology information, raised use of mobile phones for improving the experience of shopping of persons as well as high sales, buyers choices and marketing.

Impact of environment on global trade: As business environment consists various factors like political relations within countries, policies, legislations and more. So, it creates a large impact on international trade. It arise various benefits as well as drawbacks for organisations. In this context, one of the biggest advantage for is that it can expand operational activities at global scale. As this company faces stiff competition domestically so, it also provides a wealth of opportunities. But, participating in global trade arise various type of risks also. It includes legal differences because every nation has own trade and other laws so, this will be difficult for small companies like, to export products in more than one country.


P2 Complexity of strategic challenges faced by firms

In today's times, various issues and challenges are faced by small scale enterprise which affect industry activities as well as working functions. Strategic barriers and challenges also make different opportunity sources in context of enterprise expansion in whole world because of pace of modifications and global interaction in company have outcomes in increasing complexity (De Jonge, 2011). It makes challenges of risk management towards organisation for addressing further obstacles or barriers which affect on industry. Some of leading complexity reasons which became part of globalisation are innovation speed, variability of complexity, government and regulations oversight and information management. Some of important challenges or issues faced by company are as follows:

  • International business structure:Foreign activities help in growth of companies as well as modify the targets of markets. It overseas different opportunities of growth as well as an independent classify which observe all activities of international organisation. With this, it leads with re-organisation and amalgamation for accomplishing all activities and tasks in a best way. Their are various departments include the structure of international enterprise like as research and development, finance, human resource for making a good concentration on activities expertise. All these are classified in an proper control on all centralised functions. It is difficult to manage structure of internation enterprise as there are some of external competitors which impact on entire performance of each company.
  • Laws and regulations: At a time of performing within a international market, it is important for each enterprise to remember about all legislations and laws which are passed by government bodies for maintaining standards as well as ethics. These protocols are taken for promoting areas of enterprise in many others nations. These laws help for properly operating of working activities and tasks it also analyse future for achieving strategic objectives and goals of company within a limited period of time. Therefore, implications of taxes are accomplished to make trading much successful and effective in other countries. Therefore, labours and employment needs are vary from other nations (Ferraro and Briody, 2017).
  • Currency rates: Its payment and prices is an much imperative barriers for enterprise entities due to changes in rates of currency affect on profits and sales of company. It also involve one of main issue which is navigated by It is important to analyse interest and exchange which is charge to enhance enterprise in other nations. They are needed to make techniques as well as take a decisions for saving themselves from changes in rates of currency for higher advantages within a market.  
  • Cultural and communication difference: It is an main aspect which is needed to enhance enterprise all over the globe. Proper communications help in improving area of networks of a company entity hence, it is very easy to reach higher numbers of customers within a limited period of time. While enhancing strategy of international market, managers have to focus on maintaining a free flow of interaction within top to bottom level of management. It outcomes will give suggestions as well as best will be applied (Gecevska and et. al., 2010). In other side, differences in cultural will affect global trade as their demands and needs of country vary from one other. Before enhancing a enterprise in other region, have to organise a research as well as understand the culture of nation in which it run for retaining and attaining buyers for a long run.
  • Political risk: It is being unstable as well as uncertain because of economic recession and crises by this it affect the stability of political in UK. Therefore, having a strong stability in political is consider as a biggest opportunity as well as in other nation it hinder the business functional area in context of decreasing sales because of unstable situation of political, enter target market of organisation. In this, requirement to make a assessment of risk which is associated with economic and political aspects which are difficult within nature.


P3 Impact of globalisation on organisational leadership and governance

Globalization is a process and ideology that became dominant cultural, economical and political force in modern times. Process of globalisation is a evolution which is increasing at a time of global economy merged mainly by tapping of low foreign labour market, free trade and free flow of capital. Before current trends are raising globalization, organisation mainly include market as well as buyers base to their nation of origin. Therefore, fastly spread of diversity.

Impact of globalization in a positive and proper way to enterprise entity. Hence, management have to enhance effective techniques so that they can take good decisions within a perfect directions. Some of aspects are globalised which have a great impact are as follows:

  • Leadership: Each business analysed future foe expanding their enterprise in other countries so they can achieve higher share of markets as well as rising opportunity. It is having a higher influence on working situation as well as styles of a company in various ways and sometime it can close overall company. It indicates research that supervisors have to take a effective decisions as well as have to make proper techniques by using adequate tool of data collection (Hamilton and Webster, 2015). Execution of efficient leadership can do all work and functions in a perfect direction along with it aid in dealing various conditions also. With that, a leader encourage other worker to do all work in a best way which can raise output and performs level of company. It also improve work life quality by accepting all the challenges of environment because of modifications in enterprise, leaders have to determine adjustments ways and adopt modifications. Variations of environment related with inabilities to be a open minded towards latest ideas, cultural, beliefs and thoughts are represent particular to move forward. Enhancement of integration and globalisation of latest technologies force manager to again think of how they can do a business as well as lead by making daily reinvesting and improving of an organisation.
  • Organisation cultural: It is a set of values, opinions, symbols, attitudes and ideologies which are shared by companies. Mainly, culture of firms affect a way by which company can achieve the objectives of firms. Making a framework in which organisation make policies. run within the world as well as always analyse forward looking for expanding itself in other nations for higher profits. Organisation manufacture qualitative clothes according to the trends of markets, its outcomes is person have to buy goods and services in a very high quality. Therefore, a company moves in other nations then it needed to maintain an imperative culture of companies in which workers can easily communicate with higher authority. It also include workers faith, morales, beliefs and values as they are ready to perform in other nations. Hence, for maintaining a companies culture it aid in taking to a right direction.
  • Governance: In previews decades, individual living standards are increased and improved. All this have to accomplish to govern things in a right way, hence if a company governed or control its activities of enterprise in a proper way by giving training and development assistance of workers in a indirect and direct way (Kasemsap, 2014).  
  • Organisational structure:Every company has its own structure which shows how different departments and functions are linked with each other to accomplish a specific goal. Therefore, to blend this process in globalisation, managers of are required to consider some main aspects. In includes planning strategy, purpose which this company need to achieve and changes in structure accordingly. In order to conduct business at global level, an assessment of plans is required firstly. Since 'one-size-fits-all' is not an effective strategy therefore, is required to adopt some approaches which should be backed by logic and careful planning.
  • Functions:

P4 Impact of sustainable and ethical globalisation

Globalisation leads to integration of different culture, economics and regional societies by proper communication, transport and trades. It is linked with a integration of domestic into a foreign economics so it will achieve a higher competitive edge. Proper sustainable global and ethical firm will help a organisation to grab the opportunities of market, level of customer satisfaction and improve strength of financial. In fact, ethical acquisition or legislation method improve enterprise standards as well as work life quality whereas some practices of marketing carry out some issues and risks. is a global company by having a higher range goods and operates their business in a whole world. Hence, it is very complex to give and manage the aspects of ethics and business sustainability.

For example: if a country changes its trading functions it allow free capital flow as well as make easy migration process. It also retain possibility of fruitful technological and economical process. Organisation wealth depend on its nature of raising engagement and sustainable development of foreign funds by seeing the value of ecological ethics. Some of areas impact on sustainable and ethical globalisation are as follows:

  • Consumer  confidence: com is enhancing their retailers of online fashion which put mark on mind of consumer in a whole world by acquisition of ethical company cultural at working environment. It outcomes improves the quality of serves as well as goods. Hence, it is a main for enterprise to manage quality services and market value so as to achieve high competitive edge. As a small scale of enterprise, has a various rivals within a level of international market like as Lime-road, Shein, H&M, Zara etc. all this capture a higher share of market. In this relationship, mention enterprise entity need to conduct attractive campaigns of marketing for improving the value of brand. Hence, to get a higher level of satisfaction company have to improve clothing quality (Laudon and Laudon, 2015).  
  • Reduction of financial liabilities: While running a worldwide business, require to decline its financial liabilities as well as focus on raising assets. Increasing of liabilities lead towards diminishing the image of market as well as unethical practices of organisation.  
  • Effect on process of recruitment and selection: Enterprise need to apply some legal practices at a time of hiring a particular person who are having a better abilities and skills to execute all working functions. Management have to follow all laws and guidelines, terms and conditions that are pinned by a British government such as labour practices and labour law. Beside this, has made a team who is liable for defining all legal aspects of training and development as well as hiring and selection. They also follow the law of child labour.  
  • Health and care: This involve various ethical barriers and aspects, enterprise are needed to apply effective measures which maintain a positive as well as healthy workplace. For example: in manufacturing industry of there is having a use of chemical which invites various health problems (Louhiala-Salminen and Kankaanranta, 2011). Company need to make proper actions for declining consumption of chemicals which are not healthy.

Through using these components, any enterprise can easily improve standards of markets and maintain legality. Some laws and rules help an company to finish its techniques objectives and goals within a given period of time.


P5 Various ways of making decision

When enterprise, such as is expanding a enterprise at a global level. It always organise a good research market for collecting important information about targeted market which help unit to collect a good marketing techniques as well as take proper decisions. It will contribute to improve their capabilities within the company as it is very easy to perform in various conditions. Both management as well as guides to select a best plan of working which purpose is to raised the share of market of an organisation. Some ways of taking a decisions which make a task imperative are as follows:

  • Pinpoint the issues: For taking a imperative decisions of enterprise, firstly supervisor have to highlight or pinpoint all problems which occurs at a time of expanding a company all over the world. Hence, it will give best guidance to a organisation as well as manage proper criteria of working. Environment of market is also modify according to time by accomplishing wider organisation research will come to know various factors which hinder enterprise practices also (Peng, 2016).
  • Determine solution: Organisation will work hard for knowing the issues raised in future as well as they find out best solution of it. Actions or decisions are taken which do not affect company working situation and profits as well as sales. These steps aid in finishing a objectives and goals in a effective way.
  • Implement solution: When organisation analyse forward looking as well as expand enterprise. It need to execute effective solutions which help in facing a challenges of market and problems are eliminated. Hence, apply a solution in a proper manner aid to sustain at a higher competitive edge.  
  • Evaluate the effectiveness: At end, organisation who analyse future requirements to measure properly as well as potency of all decisions. It also depends on evaluating present issues as well as reasons behind this have to resolve by measuring a proper actions  (Simic and Dimitrijevic, 2012).

P6 Articulate the routes to internationalisation of an company

After the period of globalisation various enterprise have to start enhancing a enterprise functions properly. But there are various issues that are linked with a procedure it lead to modify the factors of environmental and other components. have to face various problems to select a various options which are available as well as they have to execute effective decisions according to it. It is an management responsibility to analyse all steps and actions that are represented as well as evaluate it effectively so that most effective step can be organise which will lead to meet final targets as well as purpose in a efficient and effective way. Various problems as linked with this as given below:

  • Legal protection: It is refer to a various rules as well as regulations that have to perform by enterprise in various manner. As several nations have different legal protections rules to lead a issue of generation linked with it (Tarique and Schuler, 2010).  
  • Monopoly: It is a procedure that stop organisation while entering within a new place of market. Therefore, it includes single enterprise which enjoy right transactions and operations. It pose a very big issues for various rivals as a specific organisation which can not run activities free and smooth way. With this, monopolies help to collect various problems that may be a issue for enterprise entity as no one can enter easily within a market. It need that owners have to licences as well as patents which represent manufacturing of similar substitutes.   
  • Corruption problems: There are various nations which are facing issues of corruption linked with problems. It restrict performance of enterprise in different manner as well as thus can hinder organisation function in several ways. It stop entity to introduce their process of work internationally (Trompenaars and Hampden-Turner, 2011).

All these pints which are discussed above are basis restrictions that allow company to go beyond national boundaries. Therefore, effective steps can eliminate various barriers that lead to raised issues as well as cause various problems within a enterprise system.

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As per above report it is concluded that globalisation is a wider term which gave a high influence on all functional areas of enterprise. It linked with consolidation, appearance and development of global markets for improving economic success as well as growth. Their are various factors like as environment, markets and cost which raise global enterprise trade. is an small scale enter[prise retailer which deals to manufacture innovative and new clothing goods for an age of 16 to 25 age peoples. Structure of company rules as well as regulations of the rates of currency, political situations etc. are major challenges which are faced by running within a global market. With this, globalisation has a high influence on functions, cultural, structure, governance and leadership in this companies relations are needed to evaluate external and internal components which affect decisional function. Therefore, main route of internationalism are corruption, bribery, legal protection and monopoly.


  • Cantwell, J., Dunning, J. H. and Lundan, S. M., 2010. An evolutionary approach to understanding international business activity: The co-evolution of MNEs and the institutional environment. Journal of International Business Studies. 41(4). pp.567-586.
  • Cavusgil, S. T., and et. al., 2014. International business. Pearson Australia.
  • Colfax, R. S., Rivera, J. J. and Perez, K. T., 2010. Applying emotional intelligence (EQ-I) in the workplace: Vital to global business success. Journal of International Business Research. 9. p.89.
  • De Jonge, A., 2011. Transnational corporations and international law: accountability in the global business environment. Edward Elgar Publishing.
  • Ferraro, G. P. and Briody, E. K., 2017. The cultural dimension of global business. Taylor & Francis.
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  • Hamilton, L. and Webster, P., 2015. The international business environment. Oxford University Press, USA.
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