UAE Multinational Corporations' Strategies Term Paper

UAE Multinational Corporations' Strategies - Term Paper Example It is evidently clear from the discussion that an international business 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 are the surrounding factors that influence the business performance. The business environment can have a number of impacts on business. Before establishing a business in a foreign country; it is imperative to study the business environment to establish the feasibility of a particular business. The economic factors in a given country will influence 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 commodities. The recession is usually caused as a result of the scarcity of m oney in the economy. Investors always don’t 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 services shot up hence limiting the consumers’ purchasing power. When there is an increment 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 also 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 is a primary commodity and will be offered at a relati vely cheaper price then the venture can be set up despite the inflation.