Please view explanation and answer below.

Outline
I.

Task1
a. Requirement 1
b. Requirement 2

II.

Extensive
a. Requirement 1

III.

Distinction

IV.

Task 2
a. Requirement 1
b. Requirement 2

V.

Extension
a. Requirement 1

VI.

Task 3
a. Requirement 1
b. Requirement 2
c. Requirement 3

VII.

Extension
a. Requirement 1

VIII.

References


Assignment
Task 1
Produce detailed noted for the file which:
1. Evaluate the business techniques used to analyze the international business environment
There are various business techniques used to analyze the international business
environment namely PEST Analysis, PESTEL Model, SWOT Analysis, and Porter’s Five
Forces Model.
PEST Analysis is a method that aims to understand the political, economic, social,
and technological factors outside the entities’ setting. It also describes the framework of
macro-environmental factors used in the environmental scan component of international
corporate governance. It is part of an external environmental analysis and provides an
overview of the various macro environmental factors that a company must consider. It is a
useful strategic tool for understanding market growth or decline, business location,
potential, and business direction.
PESTEL Analysis includes collection and representation of information regarding
the internal and external considerations which may or may not influence the organization.
It is a simple method and efficient tool that is utilized in a situational analysis to determine
the primary forces outside the organization that may indicate an impact. These factors
generate both opportunities and threats for the business including laws, regulations,
environment, code of ethics, and geographical forces.
SWOT Analysis, on the other hand, is a method that digs deeper into the strengths,
weaknesses, opportunities, and threats that are present in the business particularly in their
external surroundings. It also includes gatherings and representation of data regarding
factors that are within and outside the scope of the business. It is a guideline that permits
management to recognizes reasonable insights gathers from an internal analysis of the
organization’s area of excellence, needing improvement, potentials winnings and loss.
Porter’s five forces model is a review tool that maximize 5 forces in identifying the
profitability of a market and the condition of the firm’s ability to edge other competitors
out. It permits the organization and the management to classify and examine the most
crucial factors impacting the tightness of the competition in the marker along with its
profitability level. These factors identify a structure and competition in the market.
2. Assess the impact of globalization and international trade on national economies.
In economics, globalization is the process by which a company, organization, or
country starts a business on an international scale. Globalization is most used in the
economic context, but it also affects politics and culture. Globalization has generally been
shown to improve living standards in developing countries, but some analysts warn that
globalization can adversely affect regions or emerging economies and individual workers.
doing. Globalization gives companies a competitive advantage by allowing them to procure
raw materials in cheaper locations. Globalization also provides companies with the
opportunity to take advantage of lower labor costs in developing countries, while
leveraging the technical know-how and experience of more developed countries.
Globalization allows different parts of a product to be manufactured in different parts of
the world. Globalization, for example, has long been used by the automotive industry. In
the automotive industry, different parts of an automobile can be manufactured in different

countries. Companies in some countries may also be involved in the manufacture of
seemingly pure products such as cotton T-shirts.
Trade is a primary key factor to reducing or eradicating world poverty. Countries
that are open to international trade tend to grow faster, innovate, be more productive, and
provide people with higher incomes and more opportunities. Open trade also is an
advantage to low-income households by allowing consumers with more affordable goods
and services. Integration into the global economy through trade and the global value chain
helps promote economic growth and reduce poverty – local and global. International trade
allows countries to expand their markets and gain access to goods and services that may
not have been available domestically. International trade has made the market more
competitive. This will ultimately lead to more competitive prices and deliver cheaper
products to consumers.
Extensive Activities
1. An exploration of the organization structures of businesses operating in global or
international markets
There are various kinds of organizational structures for business that are operating
in a global or international markets namely Initial Division Structure, International
Divisions Structure, Global Product Division, Global Area Division, Global Functional
Division, and Mixed Metrics Structure
There are organization which focuses on on-site production, in which the firms or
entities are actively involved in exports which utilizes Initial Division Structure.
On the other hand, international division structure is utilized in business operations
in global market that are specifically recognized. It is commonly used by developing
organizations for setting up or working to stable in the global platform. It is favorable for
the entity as the top management is increasing their awareness on the behavior that is
happening in the foreign markets. Moreover, international activities are usually conducted
with unity and collaboration. On the downside of this structure, separate managers are
required on the domestic market and foreign counterparts. Global allocation is another
challenge since the resources are more difficult to acquire as compared to domestic
operations.
Global Product Division is another structure which emphasize that the groups of
products, specific products are divided and taken care of. Each sector or division will be
recognized as a profit center of the organization. The structure is advantages as variety of
products, advancements and consumers are handled and monitored. Moreover, all domestic
necessities are not neglected rather catered. It supports collaboration of various
departments involved in the operation and administration of business. However, this
structure has potential downside on the existence of doubling in the aspects of staffing.
Commonly, the management neglects considering the long-term objectives of the entity.
Also, only in domestic industry market is where the division managers are focused.
Global Area Division is another organizational structure that allows the business to
control the operations on the consideration of demographic setting rather than the product
delivered. This structure is specific to selected products only to be offered in certain areas
around the foreign market. The advantage of this structure is that operations on both local
and global market remains to be at the same level. Global managers function to the
monitoring of operations particularly on geographical setting. On the production costs, unit

costs may be reduced in this type of structure. On the contrary, organizations find it
challenging to align the product in consideration to its geographical locations and no
intentions for funding and recognizing the importance of research and development.
Global Functional Division is a type of organization structure that focuses on the
functions rather than the location. It allows the business to a leaner staffing in the
management as it focus on giving centralized control. It is more effective for organization
that includes transportation of products or good and raw materials. This approach is not
effective to most business and usually working on oil or mining firms only.
For Mixed Matric structure, a combination of international product, location and
function is considered. This is where all consumers’ needs are reached and met as products.
Are tailored-made. However, this structure may be very complex as it is not only one model
to be considered.
Distinction
1. An evaluation of the risks involved in operating in an international Environment
When a business decides to engage in global financing activities, it takes on
additional uncertainty along with the opportunities. The primary risks that are associated
with entities engaging in international finance include foreign exchange risk and political
risk. International trade was key to the rise of the global economy. In the global economy,
supply, and demand—and thus prices—both impact and are influenced by global events.
Foreign exchange risk happens when the amount of an investment fluctuates due to
movement in a currency`s exchange rate. Forex risk is also known as FX risk, currency
risk, and forex risk. When the local currency rises against the foreign currency, the profits
or profits made abroad will decrease after being returned to the local currency. The
somewhat volatile exchange rates make it very difficult to hedge this type of risk and can
negatively impact sales and profits. Geopolitical risk, also known as political risk, arises
when a country's government makes unexpected policy changes and is now negatively
impacting foreign businesses. These policy changes may include, for example, trade
barriers designed to limit or prevent international trade.
Some governments require additional funds or tariffs in exchange for the right to
export items to their country. Tariffs and quotas help protect domestic producers from
foreign competition. Again, this can have a significant impact on an organization's revenue,
as it reduces revenue from the consequences of export taxes or limits the amount of revenue
it can generate. Organizations involved in international finance can experience far greater
uncertainty regarding earnings. Unstable and unpredictable revenue streams can make it
difficult to run your business effectively. Despite these negative risks, international
businesses can open lower resource costs and greater lucrative market opportunities. There
are also ways companies can overcome some of these risks.
TASK 2
1. Analyze the micro and macro environment of a named international business organization
of your choice.
The international business organization chosen is Hyundai which is an international
automotive company. Today, it operates the world's largest comprehensive automobile
factory in Ulsan, South Korea, with an annual production capacity of 1.6 million units. The

company employs estimated of 75,000 people worldwide. Hyundai Motor is sold in 193
countries through 5,000 dealers and showrooms.
PESTEL analysis is a strategic tool for analyzing the macro environment of an
organization. PESTEL represents the political, economic, social, technical, environmental,
and legal factors that affect the macro environment of Hyundai Capital Services, Inc.
Political factors play an important role in determining the factors that may affect
the long-term profitability of Hyundai Capital Services, Inc. in a specific country or market.
Hyundai operates non-applicable in more than 12 countries and is exposed to the risks of
different types of political environments and system...