Geopoliical Trends that Influence Business

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Geopolitical trends influenced in business:

How geopolitics has affected global business:

The international geopolitical environment affects international business dynamics since it has been changing constantly. The operations of the international business may be influenced beyond and also within a specific time frame due to change in the international geopolitical environment at a particular point of time. Geopolitics influences the structure and motivation of international business operations. Relationships among states are influenced by an area's strategic value. This value depends on the importance of an area in terms of the future prospects, natural resources, proximity and size in relation to other countries. Geographic proximity enables companies from neighboring countries to engage more frequently in international business activities than their physically distant partners (Cohen, 1963).

Geopolitical trends and issues that influence global business:

The trends in oil prices influence global business. Eighty percent of the supply of oil in the world is owned by governments. War, political instability and ethnic conflict cause production disruptions throughout the world. Government investment restrictions have reduced potential and real output in many countries. Overall oil price vitality is driven by the civil conflicts and the perceive threats to supply from political uncertainty. The resulting volatility and uncertainty in oil prices has serious consequences for the long-term success of the international business (Cohen, 1963).

Geopolitical trends that may affect future of global business:

Emerging markets continue to lead growth in international business and are expected to augment the global economic arena. These countries tend to have cultures and business systems that are relatively familiar to the nationals of the markets they enter and therefore the demand for specialized international expertise may be expected to grow. The adoption of new market-oriented policies reduces the exotic nature of the emerging markets (O'Meara, Mehlinger & Newman, n.d).

Global competition affects firms and industries that were never concerned with competition or international markets. Regional and global trade pacts have linked economies and this has made it more feasible for companies to approach international ...