UAE Multinational Corporations' Strategies Term Paper

UAE multinational Corporations Strategies - Term Paper ExampleIt is evidently clear from the discussion that an multinational 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 surroundingss 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 busy business. The economic factors in a given country will influence the habits of the consumer. A good miserliness is one that has empowered consumers to purchase products they demand thus satisfy their needs. Recession and Inflation influence the purchase power of consumers. In a market that is undergoing break, there is a tendency of consumers not to purchase commodities. The recession is usually caused as a result of the scarcity of money in the economy. Investors always dont risk setting up a stark naked 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 serve 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(prenominal) commodities. The consumers can also seek alternative products that are relatively cheap and can serve their needs. It is worthy 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 rarified 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 goo d or service is a primary trade good and will be offered at a relatively cheaper price then the venture can be set up despite the inflation.