Ans- Technological environment is the state of science and technology globally. It is related to the application of new technology, technological process, institutional development, etc. The role of technology in improving the world’s environmental conditions is immense, for example, the use of renewable sources of energy (Griffy-Brown et al., 2020). The technological environment is rapidly changing and it is a component of the macro environment. It can be deemed as one of the significant development in the technological field which is a factor of propelling the globalization. It increases the productivity of the organizations contributing to the overall economic growth. With the early advancements in technology, a firm can achieve higher market share and higher returns (Griffy-Brown et al., 2020). For example, waste controller technologies, water purifier machines, 3D technology, engine efficiency, wireless charging and automation. One recent technological development in the technology was the introduction of 5G network in the industry. 5G networks are more stable and comparatively faster, also, it becomes easy to load webpages, and users do not have to spend time on uploading or downloading the YouTube videos. 5G network use cutting-edge technology, including virtual reality and augmented reality. It helps many businesses to operate smoothly. With the advancement in technology, companies can achieve their organizational objectivity (Griffy-Brown et al., 2020).
The arrival of 5G is transforming technology and proving a new mobile experience to the users. Its main aim was to reduce maintenance costs and energy consumption in the telecom industry. 5G changes the way people are functioning along with their access to technology in a new form. By 2024, there will be around 1.9 billion 5G user’s worldwide forecasts predicted. Countries like Asia and North America, developed countries, are expected to grip 5G technology faster than other countries in the world, (Campbell at el., 2017). 5G helps transform business by offering a seamless customer experience with high-rate connectivity. They promise consumers in delivering high-speed peak data with reliable communication and very vast network capabilities.
Figure 1. 5G technology networks in the world.
There are multiple ways in which 5G affects business. The industries positively affected by this change are like the automobile sector. It makes it possible for vehicles to connect seamlessly (Taheribakhsh at el., 2020). Drive less technology is becoming a mainstream due to 5G. It also proved to be important inputs in the energy industry, and this will help smart grips, which is important for electric charging. Another visible impact is on the things of the internet. Real-time data collection and analysis are possible due to 5G networks, and it also improves backend operations to work smoothly. The health care industry is introducing microchips in all of their devices and equipment, possibly due to 5G networks. It improves productivity by 40% by tracking the productivity of instruments in real-time (Campbell at el., 2017). Also, in the manufacturing sector, with the aid of 5G, the advancement is becoming stronger. Robotic automation plays a significant role in the manufacturing sector. Technologies like cloud computing and 3D printing can be implemented because of 5G (Taheribakhsh at el., 2020).
However, on the other hand, some industries and businesses suffer from advancements in technology. The business like Media & Entertainment are live-streaming it’s content as per the comfort of customer’s homes, 5G connectivity providing seamless connectivity to the customers. People are moving towards the business models like Netflix and Amazon, and companies like Warner Bros face threats due to 5G (Campbell at el., 2017). In the real estate industries, with the advancement in the 5G technologies, most tasks are done remotely. This will reduce face-to-face interaction; this will negatively impact commercial real estate because prices may lead to going down in the future (Taheribakhsh at el., 2020).
5G network unlocks many opportunities, including decision-making and end-user experience. Research shows that by 2035, the global economy will be $13.2 trillion, generating more than 22.3 million jobs worldwide in the 5G chain alone (Campbell at el., 2017). 5G improves communication technology which is important in many ways like it increases system capacity, saves energy, reduces latency, economies of scale. Fifth-generation technology 5G provides a wireless network, increasing companies’ productivity, example, organizations with machinery are using IoT with 5G. In warehousing, 5G helps companies track the products running low and actions help the supply chain run smoothly and efficiently (Mgunda, 2019).
Technology has impacted global business, technology is growing exponentially, and it has impacted every industry, including global business (Mgunda, 2019). A few years before, if individuals want to interact with the international business connection, they have to write letters, which is time-consuming. Nowadays, people can send emails and platforms like skype and google meet, and zoom helps in constant interaction. Social media accounts like Instagram, Facebook and LinkedIn helps in interacting with international customers and advertising products and services in the international market. Transportation also has major advances due to the changes in the technological environment. Jet crafts help in transporting goods all around the globe in very less time, and it is affordable for many businesses. Market globalization started forming its root level in the global market by selling goods in different countries (Mgunda, 2019). eCommerce sites like McDonald’s, Pizza Hut etc. sell their goods and services online in international markets. Online banking has advanced due to the advancement in technology. Paying online is now common nowadays as it has made easier for customers to pay online.
Figure 2: shows the Impact of technology in international business.
Ans- China has had the world’s fastest-growing economy since foreign trade and investment started. Manufacturing and agriculture play a major role in contributing to the country’s economy (Lin, 2011). The Chinese government is responsible for managing and planning the national economy. Today China is the richest country, with a net worth of $113 trillion (Lin, 2011). Apart from that, the country has faced a major economic risk for many years due to the China-U.S. trade war, Covid-19 restrictions, and major shortages in power (Zhang at el., 2022).
China is recovering faster than the rest of the world from the covid-19 outbreak. Economic decline has escalated the risks of credit within China’s financial system. Many financial banks are requesting loans for major organizations that fall for cash. Thousands of small businesses are shut down in this crisis (Zhang at el., 2022). China’s major issues in the economy are like real estate is going down as the developers in China had suffered from the last few years because of increased financial restrictions (Lin, 2011). Real estate investment and commercial sales are going down. The property developers’ debt has become a major barrier in achieving financial stability in this real estate industry. Meetings of the economists laid out to promote affordable housing construction and meet the customers’ demands, commercial markets are adjusted with the customers’ needs (Zhao, 2020). They introduced a key investment network for customers, and government policies are quickly stored by the fall in the prices. The country’s government is reducing financial loss to some extent as in December; the central bank reduces the loan rate and starts giving reserve requirements ratio for increasing bank lending.
Figure 3: This image shows the Chinese economy risks deeper slowdown than market realise.
Inflation leads to a rise in prices in 2021 without impacting the price of consumer inflation (Lin, 2011). This happens because commodity prices are going high, and transportation blocks are causing energy and labour shortages (Jiang at el., 2015). Supply chain problems are continued till 2022. Emissions restrictions lead to China power shortages will be reset in 2022, and adjustment in the production plans also takes place (Lin, 2011). Producers are giving products to consumers at higher prices, which results in the rise of consumer price inflation. Food prices are also increased, which results in a CPI increase. Inflation in the countries like the United States and European countries is transmitted to China because of rising import prices (Jiang at el., 2015).
Figure: 4 China Economic Growth Slowdown resulted in cutting interest rates.
The concept of common prosperity in China is promoted by its president Xi Jinping in various effective ways, such as cultivating the growth and development of individuals in the country (Lin, 2011). China escorted in the slew of regulations in 2021, monopolistic firms and anti-consumer practices are cracked down (Lin, 2011). The campaign promoted and motivated individuals and organizations for donating to charity for reducing economic inequality in the country. Common prosperity is gaining force in 2022, more rules and regulations are introduced for controlling unfair activities in the economy. Some major economic risks are: Increasing populations increased public expenditure and higher labour costs, unclear political plans, and environmental issues (Jiang at el., 2015).
As a senior manager, it is my responsibility to identify those economic risks that my country is facing today. Falling growth rate, which is a serious issue country’s economy is facing (Zhang at el., 2019). China’s economy is largely influenced by the infrastructure projects that the government-controlled. These projects caused lots of debt, and the economy could not handle the big pressures of debts. The market segment is negative, and debt cannot be added anymore. Rate of the growth is down as the economy of export-driven to the economy of consumption. The country’s biggest challenge is maintaining its power in the economy on a domestic level. China needs to stop selling to other nations, and the local business now has to sell their products and services. Country banking viability and manufacturing has led to much destruction in the economy, and state banks loan out the country’s money (Lin, 2011). This is the major factor as to why the banking sector is affected. Government has to manage non-performing assets. The country’s tax revenue and expenses are to be notified by the senior level officers because the fall of the GDP is directly connected with the tax (Lin, 2011). This is a huge problem for the communist country. Regional imbalances also created economic risks, and domestic consumption plays a major role in China. This will be a challenge because maintaining high Chinese growth rates with its internal issues (Zhang at el., 2019). Government has to focus on internal issues to maintain its sustainability in the environment. These factors play an important part in the world economy from decreasing its economic risks.
References
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