The global business sector is affected by various factors that either support or hinder business growth. Investors are faced with the task of exploiting opportunities in the global business sector to achieve business growth objectives while at the same time mitigating challenges. This is the status of the global business sector:
Rise of political populism and its Influence on the global business sector
The rise of political populism has been witnessed in several countries across the world including the United States and the United Kingdom. Political populism has resulted in significant policy changes that have also affected the global business sector. For instance, the United States has taken a more nationalistic approach toward its international trade policies. Brexit, on the other hand, has affected trade in Europe and between Europe and other countries. These changes have also altered geopolitics and hence impacted on international business.
Weaker growth prospects
The global business sector faces weaker growth prospects due to slowed economic growth in China and rising inflation in the United States. The uncertainty caused by growth deceleration in China has had a significant impact on the global financial markets. It is expected that even as inflation in the United States is brought under control and the Chinese economy picks up in terms of growth, it will take time for investors to have confidence in the global business sector. Weaker growth prospects, therefore, characterize the global business sector.
Importance of information
Information has continued to define the current global business sector. This has mainly been because of advancements in information technology and intense rivalry in the business environment. Many business organizations have invested in business information systems to improve efficiency in their operations and gain a competitive advantage in the marketplace. Information in the global business environment has also become important due ever-changing consumer preferences.
Global insecurity has mainly been caused by an increase in terrorism and terrorist activities. Regional and civil wars have also resulted in an influx of refugees in the European region as well as the United States and Australia. Insecurity has negatively impacted on the global business sector and more especially on tourism. Hotels have greatly suffered due to a slump in the number of international visitors due to constant travel advisories. On the other hand, an increase in the number of refugees has created sources of cheap labor in the global marketplace.
Business sustainability is another major issue in the global business sector. After the 2007/2008 Global Financial Crisis, business organizations have been forced to consider how their activities impact on other stakeholders in the business environment as opposed to focusing only on profit maximization. For instance, firms are expected to incorporate environmental sustainability strategies into their overall business strategies. Corporate social responsibility has also become a critical sustainability issue in the global business sector. Sustainability is an essential consideration in the global business environment even for multinational corporations that operate in more than one country.
These are the key issues affecting the contemporary global business sector. The management of business organizations must understand the status of the current global business environment to effectively mitigate business challenges and exploit market opportunities.