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Outline the external sources of change for a business to expand internationally, and critically analyse the strategies a business may use to ensure ethical practices in a global environment. - HSC - SSCE Business Studies - Question 27 - 2007 - Paper 1
Question 27
Outline the external sources of change for a business to expand internationally, and critically analyse the strategies a business may use to ensure ethical practices... show full transcript
Worked Solution & Example Answer:Outline the external sources of change for a business to expand internationally, and critically analyse the strategies a business may use to ensure ethical practices in a global environment. - HSC - SSCE Business Studies - Question 27 - 2007 - Paper 1
Step 1
External Sources of Change for International Expansion
Answer
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Globalization Drivers: Businesses face pressures to internationalize due to trends like market expansion, cost reduction, and global competition. Understanding foreign market dynamics is crucial for expansion.
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Technological Advancements: Innovations in technology, such as digital communication and logistics, allow businesses to operate efficiently across borders.
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Political and Legal Factors: Changes in trade agreements, regulations, and political stability can impact international operations.
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Economic Conditions: Fluctuations in economic indicators in target markets can influence expansion decisions.
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Social and Cultural Trends: Understanding local cultures, consumer preferences, and social dynamics is vital for tailoring strategies in new markets.
Step 2
Strategies to Ensure Ethical Practices
Answer
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Establishing a Code of Ethics: Businesses should adopt a comprehensive ethical framework guiding employee behavior and decision-making in all operations.
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Compliance Training: Regular training ensures employees understand and adhere to ethical standards, particularly in diverse cultural contexts.
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Conducting Ethical Audits: Regular assessments of business practices can identify areas for improvement and ensure compliance with ethical standards.
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Stakeholder Engagement: Engaging with stakeholders (customers, communities, and suppliers) ensures ethical considerations are integrated into business strategies and operations.
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Transparency and Accountability: Businesses should promote transparent practices, such as reporting on social and environmental impacts, which enhances credibility and fosters trust.