When a company goes or plans to do business in another country, they need to be aware of the environment such as Legal environment, Political environment and economic environment of that country. They have to make sure that they follow the laws and regulations and make the right business decisions based on the conditions that the country imposes.

When entering into a foreign marketplace, companies should consider various quantitative data and analytical metrics to make informed decisions. For instance, market size, growth rate and customer demographics are essential quantitative data to assess a foreign market's potential. Analyzing the competition, pricing and purchasing power parity (PPP) can provide valuable insights into the profitability of the market. Moreover, studying the cultural norms, values and beliefs of the target market is crucial to determine product suitability and pricing strategies. In terms of Analytical metrics, Companies should look into Return on Investment, Cost-Benefit analysis, and risk assessment to predict the financial viability of a new market. Evaluation of Supply chain and logistics infrastructure, exchange rates and political stability can help assess the risk involved. Additionally tracking sales, customer satisfaction and brand awareness can provide valuable feedback on the market's response to the products and services offered by the company.

Globalization has opened up new markets for businesses, enabling them to expand their customer base and increase their revenue streams. However, expanding to new markets also brings challenges, particularly when it comes to managing the political, economic, and legal environments of other countries. In this article, we will discuss strategies for managing these key globalization issues. Managing the Political, Economic, and Legal Environments of Other Countries The political, economic, and legal environments of other countries can significantly impact a company's success when doing business abroad. Therefore, it is critical to understand the factors that shape these environments and develop strategies to manage them effectively. Political Environment: The political environment refers to the government's policies, regulations, and laws that affect businesses operating within a country. To manage the political environment, companies must research the political landscape of the country they are entering, including the stability of the government, the country's relationships with other countries, and the government's policies on trade, investment, and taxation. Economic Environment: The economic environment refers to the economic conditions of a country, including the level of economic development, inflation, interest rates, and currency exchange rates. To manage the economic environment, companies must research the economic conditions of the country they are entering and understand the country's financial systems, including banking and investment regulations. Legal Environment: The legal environment refers to the laws and regulations that govern businesses operating within a country, including labor laws, environmental laws, and intellectual property laws. To manage the legal environment, companies must research the legal system of the country they are entering and understand the country's legal requirements for operating a business. To manage these environments, companies must develop strategies that include conducting thorough research, establishing relationships with local government officials and business partners, and hiring local legal and financial experts.

If you intend to internationalize your company, it is extremely important to research every recent event in the country to which you want to migrate. It is also essential to check the short-term and long-term market expectations of the place.

Regardless of the country, it is interesting to seek information about the habits of the region. Because in certain cultures, there are acts that can represent disrespect, causing a bad impression on the consumer public.

In addition to external factors that may interfere with the established planning, such as the country's precipitate income, local supply and demand, and the cost of manufacturing the product. Such obstacles can hamper the institution's development abroad. As a consequence, the company can succumb over time if the established competition manages to produce the same goods at a lower cost.

As an example, in Brazil, the instability of several social factors is constantly a topic of debate among organizations. It is not by chance that, of Brazilian companies that aim to internationalize, 61.3% are motivated by protection against domestic market volatility.

The principle of international business is the respect and adaptation that one culture has in relation to another. One of the biggest obstacles to the internationalization of companies is the cultural barrier. Customs, traditions, religion and politics can decide many things within the values of a business.

Culture is also capable of transforming an entire logistics operation. A great example of this is some meatpackers in Paran - Brazil that export to Arab countries. To complete the negotiation, the importers demanded that the chickens be slaughtered painlessly in a place facing Mecca and with religious phrases on signs at the place of slaughter. In this case, religion interferes in the exporter's structure.

For any country that wanted full economic development and that wanted to be part of world integration, it sought globalization.

Thus, there was a growing search for new markets and all the other different parameters adopted worldwide, several economic effects emerged.

Globalization has affected economic growth, poverty and income distribution. Data gathered from a group of more than one hundred countries show the division made into three groups: rich countries, countries inserted in the globalization process and countries not inserted in globalization. From 1980 onwards, the criterion for differentiating the countries involved in globalization from the rest of the developing countries was established based on two variables: tariff cuts and an increase in the volume of foreign trade.

QUESTIONS:

1. Explain how organizations should manage the political, economic, and legal environments of other countries when doing business abroad. 2. Explain why it is important for organizations to understand the culture of other countries that they do business in. How do you think differences in social culture influence the values of a business? 3. What are the economic and business implications of cultural change on an organization? Include specific examples.