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BUS 201 essay
International businesses have a number of significant factors that are crucial to take into account when intending to internationalise into an emerging or developing country. Macro environmental factors include the legal and political environment, cultural views and the economic differences of a country (Kozlinkis & Guseva 2006, p. 111). The macro environment can be defined as the main external and irrepressible factors that affect a business or an organisations decision-making, also affecting it interactions and approaches on a global scale (Johnston 2010, p. 2378). Therefore, international business must understand that they are required to take a proactive approach, as the macro environment is an area that they cannot control. The success of international businesses stems significantly from an appreciation of the differences of a country and reducing the gap of those differences (Orta 2013, p. 691).

In order for international businesses to successfully surface in developing countries they need to abide by the specific principles and morals of the chosen country. The legal and political environment of a country is ever changing and dynamic. Those changes pose great risk to international business (Bordo & Rousseau 2011, p. 1242). The political system of a country consists of a government within which formal bodies and procedures are accountable for the formulation and enforcement of collective resolutions for its nations (O’Lessker 1982, p. 54). International business need to understand the legal and political factors in a country they wish to emerge in. This is significant as it enables organisations to have an insight of the country’s rule of law, which establishes the laws, and imposes legal measures (Staats & Biglaiser 2011, p. 612). Each country individually, also has a set of ideologies which comprise of a set of principles and standards that validate for certain behaviours that assist to guide economic and political arrangements (Behague et al. 2009, p.



References: Kozlinkis V, Guseva K, 2006, ‘Evaluation of some business macro environment forecasting methods’, Journal of Business Economics and Mangement, Vol. 7, No. 3, pp. 11-117. Johnston L Orta A, 2013, ‘Managing the margins: internaltional business and “the value of culture”’, Journal of the American Ethnological Society, Vol. 40, No. 4, pp. 689-703. Bordo M O’Lessker K, 1982, ‘Political parties and the political system’, Business Horizons, Vol. 25. No. 4, pp. 53-59. Staats J Park C, Mercado Jr. R. V, 2013, ‘Determinants of financial stress in emerging market economies’, Journal of Banking and Finances, Vol. 45, pp. 199-224. Calomiris C Farrant A, McPhail E, 2009, ‘Hayek, Samuelson, and the logic of mixed economy?’, Journal of Economic Behaviour and Organisation, Vol. 69, No. 1, pp. 5-16. Frias-Aceituno J Louis Phillippe H, 2011, ‘Collective action and contract rights’, Legal Theory, Vol. 17, No.3, pp. 209-226. Scholtens B, Dam L, 2007, ‘Cultural values and international differences in business ethics’, Journal of Business Ethics, Vol. 75, No. 3, pp. 273-284. Yener K, 2011, ‘Dterminants of indivuals preference for cross cultural literacy: Role of international trade potential’, Journal of World Business, Vol. 46, No. 3, pp. 328-336. Slater S. F, Olson E. M, Finnegan C, 2011, ‘Business strategy, marketing organisation culture and performance’, Marketing Letters, Vol. 22, No. 3, pp. 227-242. Oosterlynck S, 2012, ‘Path dependence: A political Economy Perspective’, International Journal of Urban and Regional Research, Vol. 36, No. 1, pp. 158-165. Bal G, Judge P. S, 2010, ‘Innovations, Entrepreneurship and Development’, Journal of Entrepreneurship, Vol. 19, No. 1, pp. 43-62. Audretsh D. B, Link A. N, 2012, ‘Entrepreneurship and innovation: public policy frameworks’, The Journal of Technology Transfer, Vol. 37, No. 1, pp. 1-17. Sen S. R, 1991, ‘Command economy and market economy’, Economic and Political Weekly, Vol. 26, No.12, pp. 549-552. Li J, Chu C. W. L, Wang X, Zhu H, Tang G, Chen Y, 2012, ‘Symbiotic ownership, cultural alignment, and firm performance: a test among international strategic alliances’, International Business Review, Vol. 21, No. 6, pp. 987-997. Papadopoulos N, Martin O. M, 2011, ‘International Market selection and segmentation: perspectives and challanges’, International Marketing Review, Vol. 28, No. 2. Pp. 132-149. Lazear E Fabian F, Molina H, Labianca G, 2009, ‘Understanding decisions to internationalize by small and medium-sized firms located in an emerging market’, Management International Review, Vol. 49, No. 5, pp. 537-563.

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