1. The Global Economic, Political, Social and Business Environment By: Veronica Loper, Dylan Bermes, Nathan Waller, and Jess Williams

2. Economic The global economic environment consists of world-wide economic activity between various countries that are considered intertwined and can affect other countries negatively or positively. In the past fifty years the global economy has changed rapidly. Particularly marked has been the development of world economic integration and standardised products.

3. Global economic factors: ●Size of market: ○Population, income ●Nature of the economy ○Urban or rural ●Nature of economic activity ○Preindustrial, less developed, developing, industrial, advanced. ●Infrastructure ○Transportation for exporting and importing, Energy consumption, Commercial infrastructure ●Inflation ●Role of Government ○Laws, rules, regulations, stability ●Economic environment ○History, stability

4. Political The political environment includes the characteristics and policies of the political parties, the nature of the constitution and government system and environment encompassing the economic and business policies. The most important policies are: -Industrial policy -Policy toward foreign capital and technology -Fiscal Policy -Foreign trade policy

5. There are 5 main political causes of instability that affect the international markets: Some forms of government seem to be inherently unstable Changes in ruling political parties Extreme nationalism Animosity targeted toward specific countries Trade disputes Political Risks: Below is a brief list of the kinds of political risks a company faces when doing business internationally. Confiscation, Expropriation and Domestication Economic risks associated with the political environment (exchange controls, local-content laws, import restrictions, tax controls, price controls, labor problems) Political Sanctions (boycotting trade altogether or on specific products by one country to another) Political and Social Activist and Nongovernmental Organizations Violence, Terrorism and War Cyberterrorism and Cybercrime

6. Social The socio-cultural environment- A set of beliefs, customs, practices and behavior that exists within a population. International companies often include an examination of the socio-cultural environment prior to entering their target markets. http://www.businessdictionary.com/definition/socio- cultural-environment.html#ixzz43AWsLN8b

7. Global Social Factors: Changes in society are a key driver of change in markets Segments often defined based on social groups (e.g. income, age, gender) Size, structure and growth of segments closely related to changing social trends Marketing has to understand the nature and significance of social trends To understand the impacts better, you need to study the factors in details. Most companies analyze the population growth and age structure. They also show interest in consumer attitudes and lifestyle changes. Your analysis can show if there are faults in your marketing strategy. It can also help find new ideas. The social aspect focuses on the forces within the society. Family, friends, colleagues, neighbors and the media are social factors. These factors can affect our attitudes, opinions and interests. So, it can impact sales of product and revenues earned.

8. The social environment can dictate almost every aspect of your customers’ lives. Below is a list of social factors which impact customer needs and size of markets: Lifestyles Buying habits Education level Emphasis on safety Religion and beliefs Health consciousness Sex distribution Average disposable income level Social classes Family size and structure Minorities Attitudes toward saving and investing Attitudes toward green or ecological products Attitudes toward for renewable energy Population growth rate Immigration and emigration rates Age distribution and life expectancy rates Attitudes toward imported products and services Attitudes toward work, career, leisure and retirement Attitudes toward customer service and product quality

9. Business The global business environment is the environment in different sovereign countries, with factors exogenous to the home environment of the organization, influencing decision making on resource use and capabilities.

10. Types of global business firms: International firms: companies have no foreign direct investment and make their product or service only in their home country. Multinational firms: companies that invest directly in foreign assets. Global firms: companies that have investments in dozens of countries, but maintain a strong headquarters in one, usually their home country. Culture is of utmost importance regarding the global business environment. Different cultural management styles include: Polycentric: A company’s adaptation of it’s products, marketing, and support functions for each country it operates in. Ethnocentric: A company uses the same products and marketing strategy in each country as it does it’s home country. Geocentric: A company that looks at opportunities on a global scale. Instead of focusing on a way that business gets done in a given country, it looks at how to conduct business anywhere in the world, based on common ways of communicating.

11. Conclusion Since there is so many issues that directly affect the global business environment it is essential to thoroughly assess each environment as its own unique case. It is also recommended to use a PEST analysis along with a SWOT Analysis. This will allow a company to encompass each aspect of the environment and assess their potential business opportunity in the area.