Facultad de Economía, Empresa y Negocios

Alejandrina Ma. José Sanabria Córdova

Ph.D

Semester I-2024
GLOBAL ENVIRONMENT 0 1
Facultad de Economía, Empresa y Negocios

PRESENTATION GUIDE
• Class Policies

• Business environment analysis

GLOBAL ENVIRONMENT 0 2
 Class Policies Business environment analysis Economical factors

CLASS TOPICS

UNIT UNIT UNIT UNIT UNIT

I II III IV V
• Global • Political • Business
trends and factors Factors
their • Economica • Social
relevance l factors factors
at national
level
 Class Policies Business environment analysis Economical factors

CLASS TOPICS

OBJECTIVE
It is important to inform students of class policies in
order to establish rules and ensure a productive
learning environment.
 Class Policies Business environment analysis Economical factors

CLASS TOPICS

DISCIPLINARY ACTIONS

The teacher holds the

highest authority in the
classroom and is
responsible for reporting any
acts of indiscipline by the
students.
 Class Policies Business environment analysis Economical factors

CLASS TOPICS

DISCIPLINARY ACTIONS

 During class, students

are expected to ask
questions respectfully.

 Phones are keeping to

silent mode.
 Class Policies Business environment analysis Economical factors

CLASS TOPICS

DISCIPLINARY ACTIONS

In the event of an
emergency, students are
authorized to answer phone
calls with their teacher's
permission.

Class interruptions are not

allowed, and leaving the
classroom is prohibited.
 Class Policies Business environment analysis Economical factors

CLASS TOPICS

CLASS ASSISTANCE
 It is the responsibility of a
student to maintain a
minimum of 70%
attendance to be eligible
to take the exams. The student can arrive
 The teacher can approve at class up to 30
a student's absence for minutes late, provided
health or work reasons, they have a valid
but the student must excuse for their delay.
provide proof.
Class Policies Business environment analysis Economical factors

UNIT I
GLOBAL TRENDS AND THEIR RELEVANCE AT
NATIONAL LEVEL
Class Policies Business environment analysis Economical factors

1.1 Business Environment Analysis

 Class Policies Business environment analysis Economical factors

GLOBAL PROSPECTS ANALYSIS

WORLD ECONOMIC OUTLOOK OCTOBER 2023

https://www.imf.org/en/Publications/WEO/Issues/2023/10/10/world-economic-
outlook-october-2023
 Class Policies Business environment analysis Economical factors

•Each business develops within a constantly changing environment that affects it.
•Analyzing these changes can help build a successful strategy.

ANALYSIS OF THE Key

BUSINESS
Word ENVIRONMENT
What is it??? Importance
Key Word

 Examine the impact of Each business within the

external variables
company outcomes.
 It aims to help the company
identify ways to impact its
competitive environment and
create favorable conditions
for its business.
on company is analyzed to ensure a
thorough assessment of the
environment.
The appropriate environment
will depend on the individual
characteristics of each company
or people.
Class Policies Business environment analysis Economical factors

INTERNATIONAL BUSINESS ENVIRONMENT

1.- Business environment includes economic development

The following are the various

Economic development is
measures used to evaluate
accelerated by innovation,
the economic and social
which requires acquiring the
development of a country:
necessary skills, protecting
GDP, Political indicators,
intellectual property, and
Purchasing Power Parity
education, in addition to
(PPP), capital, social
geography and political
indicators, and economic
system.
indicators.
 Class Policies Business environment analysis Economical factors

INTERNATIONAL BUSINESS ENVIRONMENT

2.- Economic environment includes transition economies

Transition to democracy

Free market system

Various countries
undergo shifts in political,
Deregulation
economic, social, and
environmental factors.
Privatization

Legal systems
 Class Policies Business environment analysis Political Systems

INTERNATIONAL BUSINESS ENVIRONMENT

CASE #1

Questions?
1) In your opinion, the end of one economic era will result
in more risks of stagnation, divergence, and distress in
the next era?
2) Do you think the world will enter a period of crisis in the
next decade?
3) In your opinion, technology will increase inequalities
while cybersecurity risks remain constant.
Class Policies Business environment analysis Economical factors
Class Policies Business environment analysis Economical factors
 Class Policies Business environment analysis Political Systems

INTERNATIONAL BUSINESS ENVIRONMENT

3.- World Trade System
Political systems COLLECTIVISM
Currently the socialists retake the model of collectivism
according to Karl Max.

The State owns the means of production, distribution and

exchange of companies.

By owning the Companies, the State could guarantee

adequate compensation to employees.
 Class Policies Business environment analysis Political Systems

INTERNATIONAL BUSINESS ENVIRONMENT

3.- World Trade System

Political systems COLLECTIVISM
At the beginning of the 20th century:

 Socialism was divided into two fields: Communism

and Social Democratic.

Communism: Socialism is achieved through a

violent revolution and totalitarian dictatorship. Social
Democrat: Socialism is achieved by democratic
means and not violent revolutions.
 Class Policies Business environment analysis Political Systems

INTERNATIONAL BUSINESS ENVIRONMENT

3.- World Trade System

Political systems COLLECTIVISM

Based on the premise that:

The individual must be free to pursue his political and

economic interests (Aristotle)

It is the other extreme of collectivism, in which

individual interests precede state interests.
 Class Policies Business environment analysis Political Systems

INTERNATIONAL BUSINESS ENVIRONMENT

3.- World Trade System

Political systems INDIVIDUALISM

Appeal to democratic political systems and a free market

economy.

Favorable for international companies because they

facilitate their development and their environment.
 Class Policies Business environment analysis Political Systems

INTERNATIONAL BUSINESS ENVIRONMENT

3.- World Trade System

Political systems INDIVIDUALISM

The invisible hand of individuals seeking their wealth makes

progress increase, and without noticing it, improves society
and the
The well-being ofis others.
importance to Adam Smith "The
It is better Wealth
for the well-of
Nations"
guarantee the individual being of society, letting
freedom and freedom of people act on their own
expression, as long as it economic convenience
does not hurt others rather than a collective
physically or morally. body.
Class Policies Business environment analysis Political Systems

INTERNATIONAL BUSINESS ENVIRONMENT

3.- World Trade System

Political systems TOTALITARIANISM AND
DEMOCRACY
• Government belongs to the
people
Democracy • Exercised directly or through
elected representatives

• Exercised by a person or political

party that has absolute control
Totalitarianism over the spheres of human life
• Prohibits opposition.
 Class Policies Business environment analysis Political Systems

INTERNATIONAL BUSINESS ENVIRONMENT

3.- World Trade System

Political systems TOTALITARIANISM AND
DEMOCRACY
 Citizens participate directly in decision making.

 Most modern democratic states practice

representative democracy, in which they periodically
elect individuals to represent them.

 Elected representatives form a government that is in

charge of decisions on behalf of the electorate.
 Class Policies Business environment analysis Political Systems

INTERNATIONAL BUSINESS ENVIRONMENT

3.- World Trade System

Political systems TOTALITARIANISM AND
DEMOCRACY
Laws that define democracy:

 Freedom of expression, opinion and organization.

 Free media.
 Periodic elections.
 Universal suffrage.
 Limited periods for representatives.
 Impartial and independent judicial system.
 Non-political state bureaucracy.
 Non-partisan police and army.
 Relatively free access to state information.
Class Policies Business environment analysis Political Systems

INTERNATIONAL BUSINESS ENVIRONMENT

3.- World Trade System

Political systems TOTALITARIANISM AND
Totalitarianism DEMOCRACY

Exert widespread There are no free and

political pressure fair elections

Currently there are 4

clases: Communist,
Media censorship theocratic, tribal and right-
wing
 Class Policies Business environment analysis Political Systems

INTERNATIONAL BUSINESS ENVIRONMENT

3.- World Trade System

Political systems
TOTALITARIANISM AND
Totalitarianism DEMOCRACY
Theocratic
Communist States in which
It is a version of political power Tribal Rightist
collectivism, is monopolized
When a political It grants
which affirms by a party,
party economic
that socialism is group or
represents the freedoms, but
only achieved individual that
Totalitarian right-wing governments have the interests
backingofof the
a army
restricts
and inpolitical
some
through a governs
cases the government tribe
itself is madetoup of military and freedoms to
totalitarian according
monopolizes avoid
dictatorship. religious
power communism.
China, Cuba, principles.
etc. Islamic
countries