In order for companies to stay competitive in the global marketplace they need to understand the issues and differences in the international business environment. As businesses become more international they are faced with challenges such as cultural, legal, political, and economic differences within the countries they operate in. However, there are a few key emerging issues within the international business environment that go beyond the standard fundamental business practices which businesses should not ignore.
The following paper will discuss some of those key issues within the international business environment. These issues include natural resource shortages, raising oil prices, and emerging violence activities. I chose these particular issues after examining some of current events and trends in the world and felt they will have a large impact on the way business is conducted internationally if they continue in the current trend. I will briefly explain each of these issues then tie them together to how it relates to the international business environment.
Environment and Natural Resources
The world's ongoing population explosion has placed great strain on the world environment. This rapidly growing population, along with a move toward urbanization and industrialization, has placed significant pressure on natural resources. Deforestation, soil erosion, water pollution and land degradation continue to worsen and will begin hindering economic development in rural areas, while the rapid industrialization and urbanization in booming metropolises are straining the limits of municipal services and causing serious air pollution problems. (globalissues.org)
Any comprehensive strategy for change in human demands on global resources must also address the ethical dilemma of our failure to meet the basic needs of more than a quarter of the Earth's present population. Shortage of natural goods will affect weaker members of society, leading to social disorder. Although post-Cold War conflicts such as in Haiti, Somalia, Sudan,