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Global Business Environment Term Paper

Social, cultural, economic, legal and political differences among nations have had an important impact on the international business activities of Africa. While many in the international business community feel that Africa is a potentially huge emerging market, many concerns hold back investors. An understanding of these concerns is vital in both promoting Africa as an international business opportunity, and understanding the inherent risks and rewards in business in Africa. Social differences between African nations and the international community often act as a barrier to business transactions. Business, like any other human activity, is conducted within the realm of human interactions. As such, social differences can make or break a business deal. For example, African attitudes toward women are often more 'macho' and less liberal than in North America, and an understanding of this difference can ease social concerns.

Cultural differences, which are often closely tied to social differences,...

Culture may even impact the effectiveness of organizational structure in Africa, and international businesspeople must be aware that there are often strict rules regarding social interactions that are based on color and race in many African countries, especially South Africa in the wake of yeas of Apartheid. European and North American corporations must clearly understand the unique cultures within Africa in order conduct business effectively.
Economic differences among the larger international community and Africa have largely limited investment in Africa in the past. Factors such as exchange rates, foreign competition, import-export balances, and competitive advantages are all important factors in how Africa responds economically to international businesses.…

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Ebert, Ronald J. And Griffin, Ricky W. Business Essentials, Custom Edition. Custom Publishing, Prentice Hall.
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