Chapter 1

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International Management

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International Management

Chapter (1)

Chapter (1)

Chapter 1

Assessing the Environment

Political, Economic, Legal, Technological

Question one :

Explain the impact of global business environment and how it affects the strategic and operational decisions which managers must make ?

البيئة التجارية العالمية وكيف يؤثر ذلك على القرارات الاستراتيجية والتشغيلية

There is no doubt that Global Business environment has great impact on the strategic operational decision and Manager will Face Many Challenges in 21 Century as the following :-

1- Political and cultural differences :

as we Know political Regime has a great effect on the economy structure which will reflect on decision that management should take For example now days in Egypt there is instability in political affairs which will let investor not to take the decision to invest in Egypt.

As also culture differences among countries will lead change in the strategic operational decision in USA they take one break in working hours for 1 hour they can't do that in suadi Arabia because employees needs break in pray time.

2- Global Competition :

Global competition characterized by networks of international linkages that bind countries, institutions and people in an interdependent global economy.

As the market become greater which will lead more chance for companies which has competitive advantage in certain industry to have a bigger market.

3- Terrorism :

using adaptation as a method of managing risks makes the risk of terrorism is not great as expert claim For example USA continued to operate in Indonesia despite increase the terrorism there this is mainly because Indonesia is strategically considered as important market in 2004 government approval for foreign investment increased in the first 9 month 3.7% of the year compared with 2002.

4- Technology :

the growth of...