The National Business environment

In order to manage a business successfully anywhere, one of the most important requirements is having a thorough understanding of the environment in which it must operate. Almost every component of the firm, including its location, type, distribution network, staff policies, and product prices, is susceptible to environmental variables. Understanding the various elements that make up the corporate environment is crucial. The word "business environment" refers to the entire area that influences how a firm operates, either directly or indirectly. The firm's own country culture is of high relevance, though the employees and management may not be aware of its influence. The importance of other people's culture always becomes greater for a company as it spread its products and activities pasts its national boundaries to reach foreign countries with different cultures (Davis, Chatterjee, & Heuer, 2006). Before making a decision to start operating business in Latin American, Middle East and Asia, it is important to understand the different components of culture in these regions. Some of these basic components include greetings, signs, symbols, business etiquettes, values and language.Different nations have different cultural components which must be understood by anybody who wants to operate business in these countries.
Cultural Difference
Cultural difference exists due to the difference in the lifestyles and living standards of the people. Some of the following factors reflect the difference in cultural components of the three countries.
Latin America; The official languages in these countries include Portuguese and Spanish. In the Latin America, the western culture is followed by people, which is different from India and Middle East (Ham, 2009). In Latin America, people are more open-minded and they are fashion oriented.
India; The official language in India is Hindi, that is spoken by almost everybody. Indian follow the eastern culture, in addition, people tend to follow centralized decision making processes and are not open minded. Most of the Indians are orthodox, which is different from Latin America, where most of the people are open-minded. In India also, style and fashion are preferred and this is not the case with the Middle East.
Middle East; the common official languages includes Turkish, Kurdish, Persian and Arabic. In the Middle East, eastern culture is followed. In addition, people are never open-minded and they are less oriented to style and fashion (Ham, 2009).
Some of the basic supervisory skills that are important for one to maintain in these countries for effective business management and good business relation include' first, proper motivation of the employees is critical. This can be achieved through good remuneration and good working environment for the employees. Effective communication skill is also very important so it is important to understand the languages being used. This would enable the business to communicate effectively with all the stakeholders of the business.
Classification of the Economic System
The different traditions and other related factors are what make the economic systems of these countries to be classified differently. The economic system of the Middle East is considered Islamic traditions. Most of the countries belong to the Muslim religion, and their major export is petroleum, oil and natural gas (Carbaugh, 2016). The Middle East imports include office, telecoms, textiles, clothing and instrumentation. Indian Economic system on the other hand had a business oriented economic system, besides, the traditional economic system which has caused lower capital income, hence it can be classified as a mixed economic system. The Latin American system of economics can be defined as regional intergovernmental, given that it is made up of twenty seven Latin American and Caribbean nations.
Application of the U.S. Management Style
No. it is very hard to apply the U.S. management system in these countries as a result of the difference in social environment and cultural components. For instance, professionalism is never followed at a higher level in any business relation in these countries. But in the USA, professionalism is the top priority (Davis, Chatterjee, & Heuer, 2006). Social relations are also preferred in any management related decisions and this is not the case in the U.S. Political environment also has a lot of impact on the business management practices while in U.S., the influence of the political parties is not higher in the management practices.
Rationale of the Classification
In these countries economic systems are classified differently because of the fact that they have different environmental factors such as political, environmental, socio-cultural and technological. For instance, in the Middle East, growth rate depends on oil, while in India, it depends on the labor force, foreign investment and agriculture (Ham, 2009). The national development goals and objectives is another factor which caused the difference.
Conclusion
It is important to consider the business environment of the different countries before making the final decision to invest in any one particular country. Economic and cultural environmental analysis is key to the success of the international investment.
References
Carbaugh, R. (2016). Contemporary Economics: An Applications Approach. New York: Taylor & Francis.
Davis, H. J., Chatterjee, S. R., & Heuer, M. (2006). Management in India: trends and transition. London: SAGE.
Ham, A. (2009). Middle East. Melbourne: Lonely Planet.