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Macro-Environment Factor in Emerging/Developing Market

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Submitted By jennyle95
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In your opinion, what is the most relevant macro-environment factor (legal, political, cultural and economic differences) for an international business when choosing to internationalise into an emerging/developing market? Discuss any international business concepts or theories that could be used to help justify your answer.

In the past few decades internationalisation has been a phenomenon in being a main subject in international business research. Globalisation has allowed countless commercial opportunities to occur over the border of their national country by maintaining competition and the continuing growth of international firms (Tikhonova, 2012). In foreign countries, legal and political systems as well as the economy are essential to have knowledge in as it explains how political systems, laws and regulations and economic differences affect international business opportunities. Although these factors are vital in understanding the foreign environment, it is not as broad as culture. Culture is a factor that includes several aspects that range from different dimensions which on a broad level includes linguistic, regional, religious and ethnic dimensions (Reference for Business’s website, 2014). Fundamentally for an international firm to endure success in emerging markets it is relevantly important to have full understanding of consumers and their cultural differences. In order for a firm to reach their full potential and succeed in an emergent market they need to have the ability to adjust and connect to the markets within, in which can be effectively achieved by learning international differences that emerge from different cultures.

Social life in the twentieth century has become so extensive it has forced all means of interaction to examine ethnicity and its dimensions. Individuals from all around the world are more accepting of the different

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