2. The environment is changing over the years The international global environment is beneficial in enabling growth to businesses by expanding markets worldwide. Business entities must have a well-defined operations strategy that may enable them to align to the global environments and enjoy its benefits. Businesses in line with global environments may enjoy trade factor benefits like reduced costs of production, increased demand for goods and services, more market opportunities, export demands, and unconstrained import protocols. In addition, the global environment reduces the risk of an inadequate customer base and local competitions, hence, allowing international businesses to stay afloat in the business. Today, the success of businesses depend on the approach business managers use to address different global environments impacting business ventures. In the context of international business, the global environment definition can be explained as the environment found in any self-governing state that originates exterior to the local environment of an organization that impacts the decision making capabilities of such an organization and resource utilization matrix. The definition of global environment can be understood from the multivariate environmental factors, which impact the entire planet. These factors include competition, political influence, legislation, economic factors, and consumerism trends.
The global environment is at the core of the operations of business organizations. The factors of the global environment affect businesses in their daily transactions, but they are generally beyond the control of management, plus they constantly change. Businesses that align with global environment factors' requirements achieve increased performance, elevated morale to their employees, and ultimately a higher profit margin for individuals and their businesses.
A practical example of an organization that has felt the impact of the global environment is Apple company. Apple company faces importation constraints of some of the essential production items and constraints to sell their products both in local and international markets, primarily due to trade disputes between the United States and China. Apple, however, enjoys opportunities, due to the global environment, such as improved trade policies and a stable trading environment provided by stable political states in developed countries.
The components of the global environment can be broadly categorized into general environment and task environment.