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LSME504 International Business

On successful completion of this module students will be able to:

Explain and give examples of how the growth in international trade is influenced by factors affecting the global economy.

  1. Analyse how the global business environment influences the growth and development of international business.
  2. Identify and illustrate how socio-economic cultures and technological developments affect international business.
  3. Analyse and explain how the political environment and ecological considerations affect international business decisions.
Module Description

Technological and economic developments are reducing barriers to international trade and increasing global business opportunities. The module examines the forces shaping the international business environment and the factors creating new market opportunities, and how these determine the strategy of international organisations. In particular, new forms of organisation are being created by multinationals which can create opportunities for small and medium sized enterprises to participate in the value chain of global players.

An excellent answer will have the following attributes:
  • Exceptional understanding of the factors affecting global economy
  • Exceptional explanation supported with examples of how the growth in international trade is influenced by factors affecting the global economy
  • Exceptional understanding of what is global business environment
  • Exceptional evaluation of how the global business environment influences the growth and development of international business.
  • Exceptionally well structured and well-presented arguments
  • Correct use of English language

The “lowest prices” component of the mission statement guides the pricing strategies included Inc.’s marketing mix or 4P. Low prices are a selling point that makes the company’s e-commerce website and services attractive. A corresponding strategic objective is to reduce operational costs to enable the business to minimize prices. Amazon’s corporate mission statement also points to having the best selection. For example, the wide array of products on the company’s website is afactor that attracts customers. Moreover, Inc.’s corporate mission emphasizes convenience, such as in accessing the company’s products via the Internet. This characteristic is a response to consumers’ use of “convenience” as a criterion when evaluating the quality and attractiveness of online retail services.’s Corporate Vision Statement

Amazon’s corporate vision is “to be Earth’s most customer-centric company, where customers can find and discover anything they might want to buy online.” This vision statement underscores the business organization’s main aim of becoming the best e-commercecompany in the world. In this regard, the following characteristics are identifiable in Amazon’s corporate vision statement:

  1. Global reach
  2. Customer-centric approach
  3. Widest selection of products

Political Factors Affecting Amazon’s Technology and Services Business. operates alongside political influence. This aspect of the PESTEL/PESTLE analysis model focuses on governmental activity and its effects on businesses and their remote or macro-environment. In Amazon’s case, the following political external factors are important in the development of the e-commerce industry:

  1. Political stability of developed countries, especially the U.S.A. and European countries (opportunity)
  2. Governmental support for e-commerce (opportunity & threat)
  3. Increasing governmental efforts on cyber-security (opportunity)

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