As businesses, both individuals and companies, begin to think and then operate globally, they face environmental challenges that complicate efforts to expand revenue and increase profits. Success requires executives understand the political, legal, cultural, economic conditions and circumstances that influence market structures, business conditions, industry dynamics, and competitive situations. As we see below, executives running internationally minded United States companies consider a host of factors when evaluating new markets to enter. In their view, the barriers to global expansion, both inside and outside the United States, are primarily _______, _______, and _______. A) Political B) Cultural C) Linguistic D) Economic E) Legal
As businesses, both individuals and companies, begin to think and then operate globally, they face environmental challenges that complicate efforts to expand revenue and increase profits. Success requires executives understand the political, legal, cultural, economic conditions and circumstances that influence market structures, business conditions, industry dynamics, and competitive situations. As we see below, executives running internationally minded United States companies consider a host of factors when evaluating new markets to enter. In their view, the barriers to global expansion, both inside and outside the United States, are primarily _______, _______, and _______. A) Political B) Cultural C) Linguistic D) Economic E) Legal
Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
Section: Chapter Questions
Problem 1CE
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As businesses, both individuals and companies, begin to think and then operate globally, they face environmental challenges that complicate efforts to expand revenue and increase profits.
Success requires executives understand the political, legal, cultural, economic conditions and circumstances that influence market structures, business conditions, industry dynamics, and competitive situations.
As we see below, executives running internationally minded United States companies consider a host of factors when evaluating new markets to enter.
In their view, the barriers to global expansion, both inside and outside the United States, are primarily _______, _______, and _______.
A) Political
B) Cultural
C) Linguistic
D) Economic
E) Legal
Transcribed Image Text:THINKING GLOBALLY
HI
| Percentage of U.S. companies who operate in:
of U.S. CEOS believe
there are more growth
opportunities today
for their companies
than three years ago
29* two international regians
67%
25% one region
54%
19* three regions
of business executives
5% four regions
80%
agree that U.S. companies
should expand internationally
for long-term growth
of U.S. companies have some
foreign market involvement
10%
five regions
STRATEGIES FOR
FOREIGN OPERATIONS
GLOBAL ECONOMIC
GROWTH PROJECTIONS
EXPANSION PLANS
72%
16%
acquiring
another
company
Outlook for average anNual
real growth in the global
economy between 2015
and 2020 is between 3-4%
60%
of companies of companies
say their
international of U.S. CEOS
48%
plan to
39%
Emerging economies are
expected to grow by more
than 4%, contributing
$16.2 trillion to global
growth through 2020
36%
increase
set up an
in-market
subsidiary
their
business
international development complete a
planning will cross-border
increase
plan to
participating in
a joint venture
share
of business
M&A* in 2015
M&A*-Mergers and Acquisitions
CHALLENGES FOR GLOBALIZATION
U.S. BUSINESSES FOCUS ON THE FOLLOWING WHEN CONSIDERING NEW MARKETS TO ENTER:
POLITICAL STABILITY
89%
SKILLED LABOR FORCE
79%
CORE INFRASTRUCTURE
82%
FAVORABLE TAX CODES AND INCENTIVES
75%
FAVORABLE TARIFFS / TRADE REGULATIONS
82%
COST OF LABOR
73%
ABILITY TO ENFORCE CONTRACTS QUICKLY
80%
LABOR LAWS
71%
EASE OF TRADING ACROSS BORDERS
80%
ACCESS TO CREDIT
60%
G20
1,244
COUNTRIES
ADDED
RESTRICTIVE TRADE MEASURES
SINCE THE GLOBAL FINANCIAL CRISIS IN 2008
BARRIERS TO GLOBAL EXPANSION: INSIDE' AND OUTSIDE“ THE U.S.
REGULATORY ENVIRONMENT *
57%
COMPETITIVE ENVIRONMENT *
37%
REGULATORY ENVIRONMENT **
56%
LABOR COSTS **
29%
LEVEL OF POLITICAL STABILITY **
51%
KEY TRENDS IN THE INDUSTRY *
27%
ECONOMIC CONDITIONS **
44%
CHANGES IN REQUIREMENTS*
26%
EXCHANGE RATES *
39%
ECONOMIC CONDITIONS*
24%
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