International Environment of Global Financial Crisis and Affect

Introduction

In the modern global economy, the international environment is playing an essential role. It makes the relationship between each country's economy more closely, which means that a country's economy may affect neighboring countries, and even affect the global economy. Therefore, so as to confront the opportunities and challenges that the international environment brought, every organizations have to careful consideration of the current situation and plan the future of the corresponding strategy (Graham, John & Paul 2008).

In this essay I will discuss the role and significance of international environment, which is relevant to the global financial crisis and global economy downturn, and the management operation of the global companies under the international environment. In the first part of the essay, I will make a definition of international environment which case the spread of financial turmoil. After that, I will talk about the role of the international environment in global economy downturn. In addition, the essay will included the management operation under the global economy downturn and outlook the management manner in future. In the end of my essay, I will make a conclusion.

Definition of international environment

The international environment is the part of general environment. It is including resource flows, product markets and business competition, and their interdependence and mutual influence. Overall, the opportunities and challenges exist is the main subject of the modern international environment (Schermerhorn et al, 2011).

The role in global financial crisis

Since 2007 America financial crisis, the financial problems was spreaded to many countries in the world. Accounting to Greg (2011, p.3), the Australian share market was not immune from this financial crisis. Because internationalization is a inevitable change, the financial environment in America could easily spread to the other countries. From the definition we know that the international environment including resource flow and product markets, so the debt from America can through the economic instruments shift to other countries in the international environment. In addition the affect not only in the financial markets, but in all companies in the world. From the Greg (2011, p3), the world's biggest miner, BHP Billiton, closed down $1.94, or 4.84 per cent, at $38.12. Fortescue Mertals fell 39c, or 6.36 per cent, to $5.74. Overall, the international environment plays a disseminator in this global financial crisis. This means that the manager have to consider the solution of those problems the global financial crisis brought.

The impact on managers decision-makeing

To face the new situation of the economic globalization and the impact on businesses,