Challenges that International Business Face Today

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The challenges that international business faced today, the macro-environment explained and highlight the changes and factors. The macro-environment factors that affect on business which are legal, political, cultural and economic, these elements have a strong bond between each other that can be directly or indirectly affect each others. Even though is equally important but for this case the most relevant element that play the biggest role will be political especially applying to developing and emerging market. Different countries in the world have a mixture of different regimes and political environment. Countries with different political systems and legal regulation play a different role. Political directly affect on the economy and legal of the nation. Policies and regulations were set by the government and every policy and regulations there are pros and cons which is very difficult for the government to play an unbiased role in their position for whatever reason the nation come first before economic and cultural. Political factors briefly explain mostly related of government interfering the nation economic for example such as trade law, tariffs, tax and so forth. Political force is considered as the external environment factor (Babatunde & Adebisi 2012). Political environment plays a very vital role in the companies domestically or internationally, does not matter the organization is large or small political factors applies to the operating activities (Caterora & Graham 1999). China is also considered as a public action nation whereas bride is illegal but they have been doing this for ages. Organisations that wish to expand their business overseas have study in depth of other countries political systems of the country. According to the Sydney Morning Herald news on 18 August 2014 “Apple, Samsung faced tougher China market after subsidy cuts” reported by Edmond Lococo. First of all China is a communist country, where their political situation is very unstable. China economic reforms in the late 70s do bring more pros than cons to today China. The major change is more on to bring the China economic to a higher standard and on the hand China try changing their communist country to a more political stable country to grow with their economy. China does take strong control on their communist environment and build a strong economic nation (Blanchard & Shleifer 2001). China central government play their role to protect their nation product refer to the news Xiaomi and Lenovo by providing subsidy to the phone producer which produce the same quality compare to the phone industry giants (Samsung & Apple) with a lower price by doing such action it show a great result where the giant losses out in the sales in China, China central government did a great job to sustain their macro-economic environment by stable their economic and political force (Clapp & Helleiner 2012). Local phone giants (Xiaomi and Lenovo) and others local phone producer can take this opportunity given by the government to excel their product and organisation by the help and fund from the central government in long-term (Luthans &

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