R/615/2684 Understand the impact of globalisation and international trade

R/615/2684 International Business Environment - ATHE Level 7 Diploma in Strategic Management

Aim: The unit will enable learners to explore the changing international business environment and develop knowledge and understanding of how organisations respond.

Learning outcome 1: Be able to analyse the international business environment
Learning outcome 2. Understand the impact of globalisation and international trade
Learning outcome 3. Understand the international markets in which businesses operate

Indicative Content
1. Be able to analyse the international business environment

• Analysis techniques: Environmental analysis and diagnostics, Environment audit, Porter`s diamond (The Competitive Advantage of Nations - Porter), PESTLE, ‘Five Forces` analysis.

• Micro-environment: Stakeholders, Suppliers, Customers, Competitors, Market intermediaries.

• Macro-environment: External climate, Economic conditions, Political opinion, Legal environment (national and international), Cultural environment, Resources, for example capital, people and natural, Technology.

• International business environment: Culture, Corporate Social Responsibility, Politics, Environmental Issues, Globalisation.

2. Understand the impact of globalisation and international trade

• History: Economic theory, Dependency theory, Non-western cultures, Maritime European empires, Industrialisation, Trade and empire, Bretton Wood, Development of communications, Information technology.

• Extent of globalisation - Trade, labour movement, cultural exchange, technical development and exchange and capital

• Effects of globalisation - Effects on markets, business change, capital, jobs and outsourcing, cultural dominance, natural resources, conflict; debates: benefits and challenges of globalisation, advocates and critics

• Operations: International business conduct, Competition in different markets, International brand development, Protection of IP, Trade partnerships, Politics and regulation, Security, Ethics.

3. Understand the international markets in which businesses operate

• Sustainability

• Moral and Ethical issues: Organisation purpose, Nature of business ethics, Corporate responsibility, Social responsibility, Corporate accountability, Corporate governance, Cultural conflict (For example: nature of bribes and rewards), Different economic models, Different ethical frameworks (theories: deontological and utilitarianism), Hofestede, Hall (monochronic and polychronic cultures).

• Conflicts: Current conflicts and issues should be examined
Examples include: climate change and environmentalism, anti-globalisation and social responsibility, ‘Peak Oil`, greater insecurity, relationships with government, technological change and privacy concerns, social media, intellectual property issues
• Legislation: UK, European, global and other national legislation and guidance; global agreements on carbon; legislation on pollution; agreements on issues affecting specific industries, for example fishing agreements; institutions; codes of practice and guidelines from international (e.g. OECD, ISGN), and industry (e.g. ISAR) bodies, reporting mechanisms (audit standards)