In 2017, in the early days of his presidency, Donald Trump issued an executive order pulling the United States out of the TPP, taking a stand against foreign competitors as part of his “America First” strategy. Deregulation, privatization, and the removal of legal barriers to trade are just a few of the many ways in which changing political and legal forces can challenge organizations and managers. Others include increased emphasis on environmental protection and the preservation of endangered species, increased emphasis on workplace safety, and legal constraints against discrimination on the basis of race, gender, or age. Managers face major challenges when they seek to take advantage of the opportunities created by changing political, legal, and economic forces.
The Changing Global Environment
LO 4-4 Explain why the global environment is becoming more open and competitive, and identify the forces behind the process of globalization that increase the opportunities, com-plexities, challenges, and threats that managers face.
The 21st century has banished the idea that the world is composed of distinct national countries and markets that are separated physically, economically, and culturally. Managers need to recognize that companies compete in a truly global marketplace, which is the source of the opportunities and threats they must respond to. Managers continually confront the challenges of global competition such as establishing operations in a country abroad, obtaining inputs from sup-pliers abroad, or managing in a different national culture.