Political and Legal Environments Facing Business - Assignment Example

Global Business Environment Political and legal environments facing business Fensom, A. (March 31, . AEC Dream’s Failure ‘Still a Success’. The Diplomat. The relevance of the article to the theme of political and legal environments facing business development is the fact that it speaks to the difficulties that are facing the economic integration of Association of Southeast Asian Nations (ASEAN). The economic integration of these nations by the end of 2015 would be a major boost for business development in the countries. This is owing to the fact that the integration would create an expanded business zone for the entrepreneurs and business organizations in the member states of ASEA to produce and sell their products easily in the whole of the Southeast Asia region. The major hindrances to the economic integration of the ASEAN region are both the trade and non-tariff barriers, which falls under the political and legal environments facing businesses. Ringel, R. (March 9, 2015).Tim Cook: Pro-discrimination ‘religious freedom’ laws are dangerous. Washington Post. This article is relevant to the theme of political and legal environments facing business development, since it speaks to the discrimination laws established by different states in the USA, which have the potential of disrupting smooth business undertaking. According to Tim Cook, the CEO of Apple Inc, some of the laws enacted by the states, for example the religious law established by the state of Indiana allows traders to refuse to serve certain categories of customers on the basis of their religious beliefs. This will in turn affect the smooth operations of the business environment in the state, since businesses will be established on foundations that seek to discriminate. According t the American business community, discriminative laws, no matter which form they take, are bad for business development. Mouawad, J. & Clark,N. (March 29, 2015). Germanwings Crash Settlements Are Likely to Vary by Passenger Nationality. The New York Times. This article is relevant to the theme of political and legal environment affecting business development, since it speaks to the possibility of discriminative compensation for victims of a Germanwings jet crash, where the American passengers are likely to earn more compensation than their European counterparts. Such legal disparity is bad for business development, since it might cause airline passengers to favor companies that offer equal compensation, resulting in the other airline companies losing business. Countries likely to be affected The Southeast Asian countries likely to be affected according to the reports in the first article ar Thailand, Philippines, Singapore, Indonesia and Malaysia. These are the countries in the southeastern region of Asia which have been seeking to establish a common economic development, meaning that the collapse of the efforts or the delay in the establishment of the economic block will affect these countries negatively. In the second article, the USA is the country likely to be affected since the religious discriminative laws are being enacted by different states in the USA, which then means they will spoil the business environment in the USA. The third article has the USA and the entire Europe countries, or even any other country globally likely to be affected, since the airline could have carried passengers from different countries globally. Relevance of each reported event a) Identifying new growing international business opportunities The reported event related to the formation of the ASEAN common economic block speaks the possibility of rise of new international business opportunities, since the firms operating in any of the Southeastern countries has the opportunity to expand to the countries member of the ASEAN, once the joint economic block is formed. On the other hand, the event reported in the USA states enacting discriminative laws has the potential of hindering international business between the USA and the rest of the countries orientated to the discriminated religions, since such countries will perceive the USA as a hostile business partner. The third reported event related to the discriminative compensation of airline passengers based on their nationalities has the potential of triggering the rise of new airlines from different countries that would seek to offer their nationalities that are discriminated against by other airlines equitable airline services. b) Identifying emerging international business risks The event reporting on the formation of a common the ASEAN common economic block indicates the emerging international business risk of trade and non-tariff law’s enactment, which might hinder international business cooperation. The religious discrimination laws event in the USA presents the emerging business risk of terrorism and religious intolerance as a possible barrier to international trade. Finally, the Germanwing event involving the possible discrimination in the compensation of airline passenger victims presents the emerging business risks of inequitable international business laws that might hinder equal international trade and commercial opportunities. 2. Global flows Kirkpatrick, D. (March 29, 2015). Arab Nations to Form Military Force to Counter Iran and Islamist Extremists. The New York Times. The article is relevant to the theme of global flows, since it addresses that political changes that Iran is making to abolish religious extremism, in exchange for the removal of economic sanctions. The removal of the economic sanctions would in turn promote the movement of finances, goods, services and even people to Iran from the rest of the world, most especially the Western States of USA and Europe. The removal of sanctions will also enable ran to move its goods such as oil and other natural resources to USA, Europe and to the rest of the world. Yeginsu, C. & Shoumali, K. (March 29, 2015). Turkey Moves to Close All Gates at Border with Syria. The New York Times. The article is relevant to the theme of global flow, owing to the fact that it speaks to issue of the closure of the border between Turkey and Syria, which Turkey had kept open as par t of an open door policy with its neighbor for four years. The maintenance of an open day policy allows for the free movement of goods, services and people across the border of the two nations, thus promoting trade. Laura, E. (Mar 27, 2015). Venezuela to Present Anti-US Petition at Summit with Obama. ABC News. The relevance of this article to the theme of global flow draws from the reporting that the Venezuelans were signing petitions, to a tune of 4 million signatures to have the USA remove the sanction it has placed over its seven government officials, which prevents them from visiting the USA, over human rights abuse claims. Watkins, J. (March 27, 2015). Fight for fairness: Hundreds gather in Whiting for BP strike solidarity rally. The Times. Countries likely to be affected The countries likely to be affected by the reporting of the articles include Iran, USA and Europe countries, which are involved in addressing the issue of removing economic sanctions over Iran. In the second article, Turkey and Syria are the countries likely to be affected, since they are involved in the border tussle that has seen Turkey close its open borders to Syria, and void the 4-year open door policy. In the third article, the USA and Venezuela are the countries affected, since they have to address the issue of sanctions against the Venezuelan officials jointly. Relevance of each reported event a. Identifying new growing international business opportunities The relevance of the event of removal of international economic sanctions over Iran to new international business opportunities is the chance created for the international community to trade with Iran after the removal of the sanctions. The relevance of the event reported in the Turkey-Syria closure of the border is that it will hinder business both between Syria and Turkey, while also hindering new opportunities for international business that would have been conducted across the open border. The relevance of the Venezuela event to sign sanctions has the opportunity of creating new international business opportunities between USA and Venezuela, if the sanctioned Venezuelan seven government officials are allowed free entry into USA to discuss business. 3. Government influence on Trade and cross-national agreements Appelbaum, B. & Schwartz, N. (March 27, 2015). Yellen Says Fed Will Increase Rates Slowly. The New York Times. The relevance f this article to the theme of government influence on trade is that it reports on the plans that the federal government in the USA has to raise the interest rates in the USA slowly, since the American economy is fragile. Here, the federal government is promoting trade through slow interest rate increment. Sang-Hun, C. (March 26, 2015). South Korea Plans to Join Regional Development Bank Led by China. The New York Times. This article is relevant to the theme of government influence and cross-national agreements, since it reports on the issue of South Korea finally opting to join the Asian Infrastructure Investment Bank to access funds for improving its business infrastructure, through entering into a funding agreement with the Chinese bank. Reed, S. (March 26, 2015). Oil Prices Jump as Saudi and Yemen Fighting Escalates. The New York Times. The article is relevant to the theme of government influence and cross-national agreements, since it reports on the disagreement between Saudi Arabia and Yemen, and how such cross-national disagreements are likely to affect the rise in fuel prices. Countries likely to be affected The country likely affected I the first article is the USA and its global trading partners, since the federal interest rates affects the USA as well a all its trading partners. The countries affected in the second article are South Korea, China and the USA, since South Korea is seeking infrastructure investment funding from a Chinese bank, while the USA is opposed to this plan, rather opting South Korea should seek investment from World Bank. In the third Article, Saudi Arabia and Yemen are affected as neighboring countries with political disagreements, while the whole global fraternity is likely to be affected by the oil price hikes. Relevance of each reported event The relevance of the federal interest event is its capacity to determine the applicable interest rates, and thus profitability of USA and its trading partners businesses. The relevance o the event reporting South Korea decision to seek infrastructure investment from a Chinese bank is that the choice is likely to affect the trade relations between China, South Korea and the USA, which may spill over to affecting global trade. Finally, the relevance of the event reported on the Saudi Arabia- Yemen disagreement is in is potential to affect the whole global oil consuming fraternity through oil price hikes. Read More