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Question: Discuss about theGlobal Business Environmentfor International Relations. Answer: Introduction Global business is increasingly growing. This is because of increase in international relations, technology advancement among other factors that brings about the urge to establish a global business (Guy,2010).There is a wider market when business is done globally than when is done within a country. Different nations have different demands hence the business opportunities increases. Globalized businesses have enjoyed a big market of their products because there are no limited (Global Economy 2Globalization of Labor, 2013). Technology has also accelerated global businesses. Good communication, advancement of transport systems among many other technological trends has created confidence in the investors (International Conference on Management of Technology, Hosni, Khalil, 2004). This paper will cover the globalization, internationalization and the global business environment. Relationship Between Globalization and Internationalization Although the two words are used to bring about different meanings, they have relationships in what they define. For instance, globalization is a term used to refer to a situation where the economies that were initially at the national level has been integrated to form one global or worldwide economy whereas internationalization is the increase of importance of alliance, trade, economy or treaties to a level of serving more than one countries. From the definitions, there is a relationship between the two terms coming out clearly that, the terms are used to describe an affair done by more than one nation. Using institutional relationship the two terms carry a bit of similarity. The meaning of internationalization, in this case, is that an institution is trying to have an international face by having members from all over the world or having members from other nation other than the home nation. Globalization in this bit ensures that the standards and systems of an institution fit any me mber from any place in the world. Therefore, in most cases, one of the above consideration cannot work on its own instead there is a mutual benefit in the two. For internationalization to succeed in an institution, there must be globalization measure in the same institution, and for globalization to be effective, internationalization bust is implemented. To solve any issue that is global, then internalization must be used. For instance, when there is a crisis that is seen to cut across many nations in the world, the best way of solving it is by setting an international organization where diverse ideas alongside solutions are tabled hence a global decision is reached. Organization bodies such United Nations, World Bank, International Monetary Funds, World Trade Organization and other have been established to facilitate the internationalization of the activities in order to make them global. For example, the United Nation main objective is to uplift the developing nations in order to suit the in the global arena as the other developed nations. To achieve this, United Nation initiate activities and programs that aids the development of the third world countries. Alternatively, International Monetary Fund and World Bank help the emerging economies through provision of loans, grants and consultancy advice. All this aimed to ensure that there is uniformity in the world economy. Similarly, World Trade Organization regulates global trade activities. It negotiates for free trade with nations to ensure that disadvantaged nations are not left out of the world trade. The above discussion clearly show the activities of internalization leads into globalization. Therefore, internalization and globalization are two interdependent aspects. Differences Between Globalization and Internationalization Despite that globalization and internationalization differ in some given ways, they are used interchangeably when referring to any advancement across the world. Among the differences is that globalization is best used to mean the emerging issues that strengthen technology which eventually takes the economy, trade, and relations to an international level while internationalization mainly refers to the specific advancement of, trade or unions made internationally. When the two terms are used in firms and businesses, a difference is realized. In this context globalization in this perspective is used to refer to the dependence of factors that are recognized internationally to run the business while internationalization is used to refer to a situation when a business or firms set its operations internationally (Vaghjiani, Teoh, 2011). Also when cultural practices among the many nations are discussed, the two terms are mentioned bringing out a slight difference in their meaning. For instance, when a certain culture is adopted and used in many nations, it is then said to be internationalized while when there is a factor that makes people lean to a certain way of living, then globalization is used to describe the situation. Global Business Environment Institutions Based Formal To keep the global market in manageable operations, institutions that play different essential parts in moderating the entry and operation of the business and also to reduce the uncertainties which cause high operation cost has been put in place. Some of these institutions include; judiciary systems, investment laws, business regulations and property rights (Morrison, 2011). Before any entry to the global business, the institutions ensure that you meet their minimum requirements and eventually with proper regulations, the environment will be workable. The main functions of the institutions are business regulation. Through this function, the institution ensures that any person or company entering the global business is licensed according to the specifications of their business, for instance, based on the size. Another function is setting trade barriers. The trade barriers ensure that there is no exploitation of any member in the global business. Some barriers include high minimum entry requirements to the market, tariffs by the government, taxation among others. Another function is property rights. These are the rights that are given to the owners of the business to protect their private properties. Informal Informal institutions such as cultures, ethics and norms can influence the global business environment. The institutions support the formal institutions in performing well. The institutions set their laws, but the law does not clash with the one by formal institutions (Morrison, 2011). Resource Based Tangible and Intangible Resources. Resources are very important in a global business environment; the tangible resources are those that are physically present when a business is started or run. Examples of tangible resources are land, capital and machinery. There other resources that cannot be present physically but they form the essential part of business resources. These are the intellectual resources, trademarks. All these resources should be there because the business depends on the to be established and to be operated (Ghemawat,2017) Challenges Faced by Managers The management of the global business has its challenges. The people making up the business come from various places in the world hence they come with diversities that makes it challenging while offering leadership. Among the challenges include the language barrier. There is no globally accepted language; some nations learn their native language only hence making it difficult to pass any information successfully (Adekola, Sergi, 2016). Another challenge is the cultural differences. Although it has no major effect because people learn and change, other cultures might not be harmonized hence the business will face a rebellion in places that face the culture clash with. Currency control is another major challenge that faces the leadership of the global business. Ideally, the currency differs across the world, and therefore when the transaction is done, there must have a good understanding of conversion rates which is a hard task (Kern, 2012). Also, the laws and regulations that can be affected by the laws of a nation that you operate in is another challenge faced by global business managers. The laws of the nations in which the business operate are same neither are they all favorable when there is a disagreement in the laws, business becomes challenging (Jennings,2017). Conclusion In conclusion, globalization and internationalization are terms that can be used interchangeably in some instances because they have some relationships in their shallow meaning, but in most cases, the two terms might be used to bring two different meanings. The global business environment can be discussed in institution-based view and resource-based view. The two views can bring out the whole profile of a global business from the entry to its operations. The top managements of global business are faced with challenges because of diversity among the people involved in the business. Unless everything is globalized, the businesses will still be passing through problems of disharmony. References Adekola,A., Sergi,B.S. (2016). Global business management: A cross-cultural perspective. London: Routledge. Ghemawat,P. (2017.). The Globalization of Business. The Laws of Globalization and Business Applications, 82-116. doi:10.1017/9781316678503.005 Global Economy 2Globalization of Labor. (2013.). Introduction to Globalization and Business: Relationships and Responsibilities, 255-283. doi:10.4135/9781446215869.n9 Guy,F. (2010). The global environment of business. Oxford [etc.: Oxford University Press. International Conference on Management of Technology, Hosni,Y.A., Khalil,T.M. (2004). Management of technology: Internet economy - opportunities and challenges for developed and developing regions of the world: selected papers from the Eleventh International Conference on Management of Technology. Amsterdam: Elsevier. Jennings,M.M. (2017). Business: Its Legal, ethical, and global environment: Cengage Learning. Kern,T. (2012.). Organizational Structure without Hierarchy in a Dynamic Global Business Environment. Global Information Society. doi:10.4018/9781591403067.ch002 Morrison,J. (2011). Globalization and the Business Environment. The Global Business Environment, 39-74. doi: 10.1007/978-0-230-34437-2_2 Morrison,J. (2017). Globalization and the Business Environment. The Global Business Environment, 36-72. doi: 10.1057/978-1-137-48377-5_2 Vaghjiani,K., Teoh,J. (2011.). Comprehensive Impact of Mobile Technology on Business. Global Information Society. doi:10.4018/9781591403067.ch011