international political environment-feb2015 __dosen poppy s.winanti,ma,m.ec.dev.,ph.d(1)
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+ GBE: International Political Environment
Poppy S. Winanti
Emai l : [email protected] . id Web s i t e : h t t p : / / p o p py s w. s t a f f . u g m . a c . i d
MM UGM 25 February 2015
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+Overview Understanding
business environment
External environments of Business
Changing profile of the global business environment
Transforming events Understanding
globalisation
Assignment
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Understanding Business Environment
Environment is the total of several external and internal forces that affects the functions of business.
Every business organisation principally consists of internal environment factors and set of external environmental factors.
Environment factors influence to business directly and indirectly that control, manage and administration of business activities in the organisation.
(Hirriyapa, 2008)
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+The External Environments of Business
External Environment Everything outside an organizations
boundaries that might affect it The domestic business environment The global business environment The technological environment The political environment The sociocultural environment The economic environment n The legal/regulatory environment
(Ebert & Griffin, 2009; McKenna, n.d)
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+The External Environments of Business (cont.)
Global Business Environment The international forces that affect a business:
International trade agreements
International economic conditions
Political unrest
International market opportunities
Suppliers
Cultures
Competitors
Currency values
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(Ebert & Griffin, 2009)
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+Changing profile of the global business environment
Trade liberalisation
Technological development & innovation
Attitudes toward MNCs
International terrorism
Globalisation
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(Fatehi, n.d; Rugman & Collison, 2009)
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+What is globalisation?
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The globalisation scholars and the elephant (Steger, 2003)
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What is globalisation?
Globalisation is "the process of social, political, economic, cultural, and technological integration among countries around the world
(Hodgetts, et. al, 2006)
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+Political
nThe extension of political power and political activity across the boundaries of the modern nation-state (Held, et.al: 1999) n The principle of state sovereignty n The growing impact of intergovernmental, international non-
governmental organizations, transnational pressure groups , regional and global governance
n Global problems: terrorism, environmental problems
nChallenges the traditional distinctions between the domestic/international, inside/outside, territorial/non-territorial
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+Global security & terrorism
n Terrorism: a form of political violence that aims to achieve its objectives through creating a climate of fear and apprehension
n Problematic: one persons terrorist can be anothers freedom fighter
(Heywood, 2011)
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+Global security & terrorism (contd)
More Spending on Security Technology: Communications, Computers, Military and Police, and Surveillance at Local, Regional and Global Levels
Increased Spending and Monitoring of Economic and Financial Transactions
Cost of Doing Global Business Increases and Speed of Transactions Decreases
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Source: Kaushik, n.d
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+Economic
nThe intensification and stretching of economic interrelations across the globe (Steger, 2003) n Transnational corporations n International economic institutions n Regional trading systems
nIts measured in respect of the growing intensity, extensity, and velocity of world wide economic interactions and interconnectedness from trade through production and finance, to migration (McGrew, 2005)
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+ Cultural: Americanisation or Glocalisation?
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nThe intensification and expansion of cultural flows across the globe (Steger, 2003)
nHomogenized popular culture Vs. Glocalisation
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The drivers of Globalisation
(McKenna, n.d)
Development of new
technology
Reduced barriers to
trade
Search for competitive advantage
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+The Sustaining Forces of Globalisation
Greater policy liberalisation
Greater efficiency of
business
Greater market access
Increased flows of goods,
services, and people
(McKenna, n.d)
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+Group/Individual Assignment
Short essay on international political environment
Based on an empirical study, analyse the impact of one of the following international political features for business activities : international trade regulations
technological innovation globalisation (economic, political, cultural) regional agreements
- greater policy liberalisation
- political unrest
- international terrorism, etc
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+Assignment (contd)
nEssay must focus on both opportunities and threats posed by international political enviornment for business activities
The length of the essay is between 1.000 1.500 words (or 4 5 pages, Times New Roman, 12 fonts, 1,5 lines)
Essay must be submitted on 18 March 2015
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