International Business Environment Essay

Venturing into new work and foodstuff frontiers uniform Malaysia requires extensive two-baggering of the milieu in terminations of the authoritiesal establishment, craft strength, legal and regulatory framework, and availability of resources, socio-cultural aspects and to an expiration geographical position and infrastructural development of the unsophisticated. The explore and analysis of these draw and crucial featureors argon authorised in analysing the potential and caper environment of Malaysia. Malaysia possesses unique features and characteristics which ar variant from any former(a) evidence and its whence essential to s hind end and seek the grocery.Geographic ally located in east Asia, Malaysia has been one of Asia fastest developing moneymaking(prenominal)izes in the last half century. Malaysia is among the Asiatic Tigers a terminology given to the Asian economies which change from third world tribe military position to midriff income na tions within a con span thanks to sound and trenchant scotch policies. It has a sizeable macrocosm of around 28. 3 million with various heathenish composition largely comprising the social Malays, Indians and Chinese cosmos (CIA fact book, 2010). similarly Malaysia is a developing nation with maturement risque per capita income make it a potential market for introduction of any trade. The nation has sound established and developed monetary markets and excellent world class root word in transport air and sea and more thanover its known universal for the technology superiority and advancements. Its extremely developed commercialized and manufacture sectors makes it a target for some world(prenominal) problem. Malaysia has enjoyed a relative stable political stableness which has been instrumental in spurring its delivery and attracting foreign firms.Its withal a competitive subscriber line environment with limber legal and regulatory framework making it motiv eless to ope crop backing. accordingly its very important to explore and represent these aspects and separates in detail to ensure destination and market analysis of Malaysia is obtained through in depth catch of the market. This would enable the come with to undertake its st gradegies and plans effectively and efficiently in Malaysia. The paper tries to look some of the aspects mentioned preceding(prenominal) in more detail.Conclusively, In topical anesthetic anaestheticise to expand business to other countries, many factors should be put into consideration so as to ensure there is pro development of the business. Critical analysis, exploring and study makeup is therefore important considering these issue and and then should be undertaken respectively. Introduction In business, the understanding of a given culture in which business is to be done and be found is very critical and frankincense important. With connection to these some aspects go through to be conside ablaze(p) so as to know where and which body politic qualifies better for allocation of such business.These can be well achieved through exploring and analysing the business environment of a prospective country. For instance, close and cultural practices argon very important and swallow to be understood in ball club to make sure all the selling st rankgies overhear been able to bid not bad(predicate) fruits in the business (Sandra, 2001, p 58). This paper thus comes up with the choosing of Malaysia as an example of a country on which as the Business Development music director of Australia have chosen with the aim of expanding business.Therefore this paper discusses the critical analysis and the report obtained from exploring and analysing business environment of Malaysia which in fruit helps in determining where the country fits in the complexity of international business environment. umteen factors should be put into consideration so as to decide whether the business provide effectively run smoothly (Dunning, 1998, p 98). Country Profile Situated in Eastern Asia Geographically Malaysia covers approximately expanse of 392,748 squ are Kms, this is lightly larger than saucily Mexico in United States and a existence of 26 Million people (C.I. A fact book, 2010) this is a sizeable population which can be viable for any target market and introduction of business ventures. In Malaysia Islam is the pre-dominant and largest religion practised by the pagan Malays precisely the nation is a multi- heathen society and has other ghostlike beliefs like Buddhism, Hinduism, Christianity and Taoism practised by the nonage social population of Indians, Chinese and a small proportion of immigrant labour force. cultural Composition of Malaysia has around 53. 3% ethnic Malays, Chinese 26%, Indigenous 11. 8%, Indians 7. 7% others 1. % and Islamic religion has 60. 4% followers, Buddhism 9. 2%, Christianity 9. 1%, Hinduism 6. 3% ( CIA fact book ,2010) Its essent ial to know the ethnic and religious composition in order to understand the fabric of the society properly. Bahasa Melayu is the official language along with Chinese , side and Tamil are the languages employ pre-dominantly in Malaysia and its a plus to have English as one of the languages as it makes it easy for transactions and communication when the business and corporations aspiring to penetrate Malaysian market are from English speaking nations.The country is contained of ii distinct parts which are separated by the South china Sea whereby, the parts, the east and west trade similar landscape in that they have coastal plains which rise due to densely forested hill and mountains. Malaysia neighbours Indonesia and thus the two countries share some cultures (Carsrud & Brannback 2007, p, 54). This is due to the Indians ethnic friendship which is quite well correspond in Malaysia and also it borders countries like capital of Singapore and China.The nation is well endowed with subjective resources, good infrastructural development in communication theory technology and transport and a good coast line with proximity to study sea routes. Economy Malaysia transformed from a third world delivery to middle income economy within a sequence of around three decades and the nation shifted from world a primarily coarse economic based to an industrial and commercial economic hub.The country actively participates in international trade which has been enhanced by the transportation routes around its coastline and has well established manufacturing sector. Malaysia produces swipe exporter of manufactured goods, palm crude, rubber, petroleum and liquified natural gas. Malaysia is considered as a newly industrialized country although not a developed one but on the way to become one and explore shows its GPD per capita ( of around $14000) in the year 2008 was record high thus ranking the country 48th in the world and second in Southeast Asia (Drucker, 2007, p , 23).The nation has a GDP of $313 billion and an bonny GDP annual harvest-time rate of 5. 9 %( Ibp USA, 2008, p. 7 ) The GDP growth rate has been consistent over a long period of time and the economy has shown resiliency during the wake of economic crisis like the Asian economic crisis and recent spheric recession. Its known for the developed commercial sector producing and exporting electronic products and other innovational technological goods.Export market is $158 billion and its property Malaysian notes (ringgit) exchanges at $3 (Ibp US, 2008 p. 18) The exchange rate of ringgit against major currencies has been consistent and stable avoiding currency fluctuations. Malaysia has a floating exchange rate although it has pegged its currency to the dollar. Similarly the nation is a member of almost all major trading blocs around the region and Asia, from WTO to regional economic trade blocs making it an disperse and very competitive market.Political organizationSince Malay sia gained independence its economic procedure has been high in comparison with other Asian nations due to its stableness and has avoided military coups ( Nayland,2001,p. 164) some other critical factor to consider is the political system of the country. Politics and economy are intertwined and interrelated and political stability determines the environment which economy and business operates. The political stability of the democratic nation like Malaysia makes it an attractive(a) place for investment.Malaysia is a federal implicit in(p) elective monarchy having a head of state is referred as the king of the nation who is pick out to a five year term and a parliamentary system of government headed by prime minister and has a healthy democratic space with face-off parties Parliamentary elections are held after every five years and thus exactly registered voters of age 21 and above are allowed to vote for the members of the House of Representatives (Ahmad & Seymour, 2008, p, 76) .Legal and restrictive Framework MIDA (Malaysian Industrial Development Authority) is a body charged with promoting investments activities both local and foreign, and to helped and guided investments in the business environment (Cheang Lo, 1997, p. 57) This is one of the bodies created by the government to ward off the bureaucracy in obtaining legal accompaniment in the country by simplifying the licensing and regulatory serve well of businesses which wish venture in that country.Although any business needs to go through the required government process in obtaining licences the government has created an environment where restrictions and licensing red tape has been reduced significantly. Socio- Cultural purlieu The socio-cultural environment in Malaysia is well outlined by its ethnic composition and religious diversity. Malaysia is pluralistic society with Malays being the mass and the other significant minority throng like the Chinese, Indians and Tamils each with different religion. With such a rich cultural heritage, acquiring the relevant skills and cultural knowledge in order to gestate business in Malaysia is crucial to your success (Communicaid, n. d) the socio-cultural environment puts in Malaysia although comprising different ethnic crowds and religious affiliations is a conservative society and thus its important for people to understand how to get by the people.Each particular ethnic group has its own mode of communication and fundamental interaction and its critical to ensure you understand the culture and behaviour of each ethnic group in Malaysia. Generalizations of the all Malaysians bit conducting business may be pricy to the business as it may be viewed negatively by other ethnic groups. For instance the Chinese for example digest punctuality, whereas both ethnic Malays and Indian business people have a more relaxed attitude towards time (Communicaid, n. ) In insure to the consumer attitudes towards products and goods there is a general run awayencies among Malays of regarding goods produced locally to be somehow inferior to the goods make by the developed nations which are advanced more than them and hence produce property products. Quality is sensitive to Malays consumers. Malaysian local products are regarded with skepticism compared to south Korea products but are believed to be of high role in comparison with goods from India ,china, Mexico and Thailand. (Ghazali et al,2008, p. 7)ResourcesThe country is well endowed with natural resources and enough lancinate materials which it has continued to exploit in its seek to develop its economy. During most of the 1970s and 1980s Malaysia was the largest producer and exporter of tin, tropical timber, palm oil and natural rubber (Vincent, 2005, p. 10) Although Currently, Malaysia is not a major producer of some of the naked materials like natural rubber it lock up has abundant supply of tin, timber palm oil and natural rubber which has been used effec tively by the government in exploring and developing its economy.Malaysia has transformed itself from primarily agricultural based economy to an industrial, technological and commercial giant due to the availability of adult male resources in the country. Malaysia has been known to be rough in attracting foreign labour in its economy to make it competitive and potent. as yet there have been slight problems in obtaining and retaining skilled labour from Malaysia. In oppose to this 44% of Australians firms reported difficulty in maintaining skilled labour in Malaysia (Nayland, 2001, p. 0) good and Social Responsibility More than 60% of managers in Malaysia were supportive of the view that that to reform market share and public icon their firms would have to show there are social responsible (Harrison, 2005, p. 208) Malaysian socio-cultural grammatical construction is based on conservative setting like Islamic religious holding on the Malay population which genuinely sees the aspect of giving back to them community is a responsibility rather than favour.Corporations and business doing business in Malaysia are therefore obligated to be active in supporting projects in communities to uplift their image of sharing with the community the profits obtained from them. ratiocination and Recommendations Having noted some of the major findings and factors impact the level of entrepreneurial activities from research that has been done, it give be needful to agree on the need of making Malaysia one of the key standards of venturing into any fast developing markets.Also, it is necessary to note that, some of the factors that affect the level of business and entrepreneurship in this country tend to have direct impacts on other economic activities and achievements and they have been identified as positive and potent. Once all the factors have been keenly identified and outlined, it becomes quite easy to address them respectively so as to attain overall economic p erformance and development (Datamonitor, 2009, p, 31).From the analysis and research based on political stability, economic performance and availability or resources the general motion-picture show can be concluded that Malaysia is a potential and viable environment to conduct any business of any nature. Although it may have some challenges and obstacles, the business environment and its market potential makes it a tributary environment to establish business ventures and has a potential market for growth. The nation is also strategically placed to penetrate other markets in Asia.