The paper "Essentials of Business Environment" Is a wonderful example of a Business Case study. Globalization of economies has resulted in the increase of the openness of the markets bringing in a whole new era of business. Multinational corporations, otherwise abbreviated as MNCs have had a fair share of the globalized markets, using this as an opportunity to enter into new areas that were previously not open for entry. Despite the chance of entry into new markets, there exist s plethora of challenges that are brought in by the heterogeneous nature of the world especially with regard to the business environment (Saleem, 2010).
It is obvious that the strategic decisions of the MNCs are based on the factors of the society that if were homogeneous, could have made the planning process easier (Sedoglavich, Hill and Field, 2008). However, the decision making process is hampered by factors that experience differences across the world making it more heterogeneous than homogeneous (Sedoglavich, Hill and Field, 2008). These factors include political factors, economic factors, legal factors, technological factors, cultural factors, and even environmental factors, which are dynamic and different from one region to the other (Sedoglavich, Hill and Field, 2008).
This paper focuses on the factors that make the world more heterogeneous than homogeneous and then explores how the same factors confer a significant impact on the strategic decisions that are made by the MNCs, which have dominated the competitive international market. The Extent to which the World is still Homogeneous There are different factors that are not in tandem worldwide, making the world more of a chaotic place and not heterogeneous at all. These factors include the cultural aspects, the legal systems and environments, the political environments, and the economical environments (Aswathappa, 2009).
Together, these are coupled and make the world become more heterogeneous. With reference to the political aspects, different countries have variations in the forms of regime charged with the governance of the whole country. There are some areas that by nature of their geographical position and political systems are more prone to attacks and are therefore more politically unstable compared to others (Elango and R. Wieland, 2014). Aswathappa (2009) asserts that the difference in political systems equally contribute to the existence of a varying degree of laws that govern how the countries operate as well as how the individual citizens relate to each other in many matters, business being one of them. The political systems of a given country shape the employment laws that form the economic core of a country (Elango and R.
Wieland, 2014). Additionally, there are some distinct differences in countries some being referred to as developed nations, some developing nations, and some yet as the third world country (Aswathappa, 2009).
This is mainly based on the open policies that are drafted by the countries and the development that is pushed by different political regimes that take the wheel of governance (Elango and R. Wieland, 2014). According to Aswathappa (2009) there are countries which by the mere fact that they are politically unstable, become marked as high political risk nations and therefore face some sanctions compared to the politically stable regions. There are countries that have had dark pats based on political instability levels (Sedoglavich, Hill, and Field, 2008).
Such countries like Sri Lanka and Thailand were previously faced with civil war (Aswathappa, 2009). The political systems also determine whether or not a country is a member of a trade block (Sedoglavich, Hill, and Field, 2008). The mere existence of different trade blocks and different trade barriers further support the point of the existence of high levels of heterogeneity in the world.
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