International Business Assignment
The fast changing world impacts the business decisions and the ability of companies to stay profitable in the long-term. This can be explained by such factors as political instability, economic downturns, inequality in terms of profit distribution, and the ever increasing competition. Despite the fact that all these factors are important, the global community is actively discussing political tensions on the Korean peninsula. The North Korean crisis has a massive impact on the global economy. North Korea has always been famous for being isolated from the news, both coming in and out of the country. That is why the current tensions within the Korean peninsula have such destabilizing consequences on both the global economy and business decisions. According to New York Times, North Korea is simply testing the strength of the armed forces of the United States in this region (https://www.nytimes.com/2017/04/17/world/asia/trump-north-korea-nuclear-us-talks.html). This can be defined as an unacceptable practice that destabilizes the global economic system because of the possibility of war between two nuclear powers. The instability in North Korea can impact the business relations between two giants - the United States and China. Thing is that nearly 90% of international trade of North Korea is conducted with China. The threat coming from North Korea forces China to end any business relations with the country. As a result, China will lose an important business partner which will also impact the economy of the United States. The US dollar is an international currency so that any changes in the economy of the United States impact the global economic system. So that it is possible to conclude that the North Korean crisis has an impact on the global economic system. As a result of economic instability, business decisions are concentrated on saving financial resources in order to have enough funds to support an appropriate level of competitiveness of the …
