UAE Multinational Corporations' Strategies Term Paper

UAE Multinational Corporations Strategies - Term Paper ExampleIt is evidently clear from the discussion that an international dividing line is an enterprise or entity that is involved in commercial transactions in two or more than two countries. An international business cuts across boundaries in doing business. The business environments ar the surrounding factors that lick the business performance. The business environment can have a number of impacts on business. Before establishing a business in a foreign terra firma it is imperative to study the business environment to establish the feasibility of a particular business. The economic factors in a given country forget mold the habits of the consumer. A good economy is one that has empowered consumers to purchase products they demand thus satisfy their needs. Recession and Inflation influence the purchasing power of consumers. In a market that is undergoing recession, there is a tendency of consumers not to purchase commoditie s. The recession is usually caused as a result of the scarcity of money in the economy. Investors always dont risk setting up a new venture in a market that is undergoing a recession. This is because produce will not sell as the consumers limit their spending. Inflation is an economic situation where the prices of goods and portions shot up hence limiting the consumers purchasing power. When there is an emergence in the price of goods or services, the consumers anticipate lower prices in the future and thus they do not spend on such commodities. The consumers can too seek alternative products that are relatively cheap and can serve their needs. It is proper to investigate the market before setting up a business venture or marketing a product. Factors that will influence a business venture to be established in an inflated economy are vast. If the good or service being offered does not exist in the new business environment, then it is worth investing there. If the good or service i s a primary commodity and will be offered at a relatively cheaper price then the venture can be set up despite the inflation.