Understanding the Global Environment

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In this paper UGB 114 Understanding the Global Environment, we are required to explain how animal rights movements affect the global business environment. Global business consists of transactions that are devised and carried out across national borders. Global business is to satisfy the objectives of individuals, companies, and organizations. These transactions take on various forms, which are often interrelated. The primary types of international business are import export trade and foreign direct investment (FDI). Whereas, global business environment consists 4 types of factors, which are politic factor (P), economic factor (E), social factor (S) and technological factor (T). Actually, there are a lot of people always confused about the definition between animal welfare and animal rights. Animal welfare is actually concerned with service, safety, quality of life, and especially always kept in zoo by its master, but animal right is humans have no right to dominate over, and seek to destroy the domestic animal by whatever means necessary. (Animal Rights vs Animal Welfare, 2009) Actually, the government can obtain their rights, if any broad protections or rights, such as granting standing to animals have to come through legislation. (Janice Siegford, 2012) Not only that, the government should introduce a ballot initiative or referendum. This method approaches the voting public directly and by passes the legislature, which may be subject to pressures from various industries. It is fairer to people too. So, if the animal has its rights, it will affect the global business environment (PEST). From political view, the government will feel stress because organizations fight for animals and new will have to reform. From the economical view, business such as tourism, pet shop and circus will probably shut down. From the social, the sociality lifestyle will change because of animal rights. From the technology view, scientists have to find new technology without using animals, so new technology can be obtained. However, there are also cons on it.

Politics Factor

In politics, government plays a very important role in solving the political issue relating to animal rights movements. According to Paul Wade, organizations should responsible animal rights movement as well as legislation that in the name of animal protection. (Waldua “Animal rights what Everyone need to know”, 2011). Government has to set the new law, such as fines and jail to punish people who impede the rights of animal. If the government sets a heavy punishment to those who impede the rights of animal or kill the animal will make people be afraid to kill the animal. So, the heavier punishment will make people follow the rules. However, the government has to fix the economy too, because if the animals get it right, there is a lot of business such as a pet shop, circus and the pharmaceutical industry are affected. This will make the economy become not stable. So, the government has a responsibility to fix the economy to make the economy become more stable. Besides that, the government also needs to find the method to replace animal nutrition because there are majority of food and medicals are making in animals meats or organs. Without animals, not only some business has been affected, but human is also affected. Human needs protein everyday to make our body become healthy. Animal meat is high in protein, especially fish. So, the government has to find the new method to replace animal’s meat and organ to measure that people can get enough protein everyday without getting protein from animals. Not only that, the government also needs to create new job for people who are business affected by animal rights movements. When government reform the law regarding animal protection, there is a lot of business affected, especially restaurant with non-vegetarian, circus and tourism business. However, some of them may lose their job because they cannot continue to do their non-vegetarian restaurant business. So, the government has to create jobs such as involving animal rearing, zoo and other to help people who are unemployment. Moreover, government can encourage people who are doing their non-vegetarian restaurant business change to a vegetarian restaurant. Furthermore, the government can encourage people to develop in vegetarian restaurant or farming in the country. Development in farming will create more job opportunity. At the same time, government can also export more vegetable and nut if the development of farming is good to increase the national income. This not only good for the economy, but also reduce the burden of politics.

Economic Factors

The animal rights movement also affects the global business environment in the economics. The cost of keeping will increase. So, they will lead to the increase in the price of livestock and foods. So, there are a lot of businesses related to animals business such as non-vegetarian restaurant, frozen meat business and cosmetic business should increase their cost to continue their business. Nowadays, cosmetic business is still using animals to do their experiment. Without animals, they have to find new alternatives to continue their cosmetic business. So, if animals have it rights, cosmetic business will affect. Not only that, the community also no need the job related to animal worker such as circus and pet shop and other. This will cause the amount of unemployment increase. If the amount of unemployment increases, the rate of unemployment will follow to increase. The unemployment rate is the most widely used indicators of the well-being of a labour market and an important measure of the state of an economy in general. When the number of unemployment more and more increase, it will make the economics of the company become bad. This phenomenon is not good for the country. Not only that, people will face the inflation problem if the animal rights is set because people will become vegetarian immediately. So, this will cause the aggregate demand of vegetables increase, but the supplier of vegetable will face a shortage with vegetation problem. According to Reserve Bank of New Zealand, the description of inflation is a rise of average prices through the economy and there are shortages of labor and materials. (Reserve Bank of New Zealand, 2014)When the aggregate demand of vegetables and nuts is more than the supplier, the price of vegetables and nuts will increase. If the number of unemployment and deflation rate more and more increase, it will become a serious economic problem in the country. Moreover, the country also will face the lake of the national income problem. This is because the country has to import more vegetables and nuts from other country to fulfil people need. However, the country also less exports at the same time because the country did not export animal meat and less export vegetables to other country. So, the income of country will decrease. In the other way, cosmetic companies will use a new test using prorazao to do the experiment. This technology has been developed by U.K research. Actually, it is cheap compared with using animals to do their experiment because the cosmetic companies no need to breed the animals like rabbit, dog, rat and other for the experiment. So, cosmetic companies can cut down animals test cost. Though this alternative way develop, economic will become more and more stable. At the same time, the structural unemployment will happen. According to dictionary.com, structural unemployment is unemployment, which has changed in the structure of an industry such as technology and test. (Dictionary.com, 2014)Due to technology and test will change while the animal’s have it right, the structural unemployment will occur. The animal rights movements will make business such as cosmetic business cannot continue their business because they cannot continue to use the animals to do their experiment. So, their business will affected by the animal rights movement.

Social Factors

In social, people who are in non-vegetarian have to avoid eating animal’s meat. Though this situation, there is a lot of people are affected because of animal rights movements. People must comply with the law to protect animals. This will affect people cannot continue their job and business easily. So, the unemployment will increase. Not only that, people also need to face the inflation problem while animals have it right. This is because the demand of vegetable will become more, but the suppliers supply less. It will make the price of vegetable become more expensive. Besides that, the cost of keeping will increase. So, they will lead to the increase in the price of livestock and foods. When the price of the vegetable and meat increase, most people not only cannot live in comfortable life but also faces a poverty problem. As a result, the economy would become unstable and people could live in poverty. In the other way, people also will face the healthy body problem because people will become frailer without animal meat. People cannot get enough protein from certain vegetables such as sweet corn and broccoli and nuts. Although, some vegetables and nuts got protein, the animal meat protein is higher compared with some vegetables and nuts. So, people have to eat more vegetable and nuts to get enough protein. It might cause the expenses high. Though this situation, the majority will live even more difficult, because they need to rely on drugs to maintain a healthy body. Besides that, there are some of the culture will change because animal rights movements. In some religion, such as Buddhist, they would like to use animal’s meat like chicken, pork, lamb and other to worship their gods and ancestors. So, they have to change their culture when animals have it right. They have to change the animal’s meat into vegetarian to worship their gods and ancestors because the livestock become expensive. So, they cannot continue to use culture before to worship their gods and ancestors. Moreover, some of the traditional medical is making in animal body part. For example, a majority of Chinese like to take antlers as their medicine. It is good for kidney if people taking antlers. However, this also affects some culture and business. Moreover, people also cannot enjoy using some clothes and handbags are made animals fur or skin. So, Fashion Company has to make clothes and handbags in cotton material without using animal’s skin and fur. Of course, handbags are made in animal’s skin or fur such as crocodile skin and sheep for more look noble and durable compare with cotton handbags, but if animals have it right, people cannot use the animal’s skin or fur to make handbag and clothes. However, animal’s fur or skin keeps people more warm in the cool weather. Due to people cannot use the animal’s skin and fur to make the clothes, people cannot enjoy the high quality of products that make from the animal’s fur.

Technological factor

In technology, cosmetic business and pharmaceutical business will also affect by the animal rights movement. For cosmetic business, they have to find other new technology without using animals such as rat and rabbit to do their experiment. They can use protozoa. It is a single-celled organism. It has been developed by United Kingdom researchers, who say it has “great potential” for reducing the use of animals to determine the safety the use of animals to determine the safety of cosmetic. This new method is also relatively simple, reliable and inexpensive. (Ecouterre, 2014) Though this new technology, human no need to use the animals to do their experiment, but also can use this safe method for their experiment. Then, the cosmetic businesses no need to stop their experiment without animals. Whereas, if humans less consuming the animals, humans will become more and more frail because people cannot get enough nutrition from their food. They will eat less animal’s meat such as chicken and fish due to the cost of livestock is expensive. This will cause pharmaceutical industry face a lot of problems. Pharmaceutical industry cannot continue to make medical by using animals such as antler, rhinoceros and tusks to make their medical and sell to people to eat to get the healthy body. (Traditional Chinese Medicine and Endangered Animals, 2007)Though pharmaceutical technology, scientists are able to replace animals with vegetable and fruits to make their medical. So that, the pharmaceutical industry can solve their problem to encourage animal rights movements. However, pharmaceutical might save the cost to fetch the animals. Although, scientist of pharmaceutical need to use more quantity of vegetable compare to use less quantity of meat to make the medical, pharmaceutical industry has to spend more money to buy the livestock to make the medical. So, the scientist has to invent new technology by using vegetables or nuts to make the medical. It is good for the pharmaceutical industry because pharmaceutical industry can cut down some of their cost to buy the livestock. Moreover, the animals cannot get any injection such as hormones from people, especially famer animals for their own benefits. For example, if the chicken and cow get injection with hormones, this will make chicken and cow growth bigger and faster. (Dr Tom Tabler, 2000-2014) It can save their time to feed the livestock. So, injection activities should stop while animals have it rights. So, the gamer should spend more money to feed the animals. This will make the cost of livestock increase. So, business such as meat industry will affect by animal rights movements. Due to the cost of livestock become expensive, the damage of livestock will decrease.


Animal rights movements have affected 4 factors of the global business environment (PEST). For politic (P) view, government should responsibility to solve the problems related to politic, such as set the law and fix the economy. While, economy (E) view, structural unemployment and inflation will happen because of animal rights movements. For social (S) view, people have to face their healthy body problem and change their culture. Whereas for technology (T) view, some business, especially cosmetic company and pharmaceutical industry have to change their technology due to they cannot continue to use the animals in their work. If animals have it right, animal rights movements have brought some advantages in technological factor, but animal rights movements bring more disadvantages in politic factor, economic factor, social factor and technological factor. Although, animals rights movements brings a lot of disadvantages in global business environment (PEST), animals should have it right because every live in the world have their value. Humans should not simply kill the animals. Nowadays, more and more animals become extinct because there are many animals killed to make medical or other use. Animals should have it right to continue its breeding. So that, our new generation can sees every animal. In my opinion, animals should have it right. Although, animal rights movements brings a lot of disadvantages to the global business environment. The problem and disadvantages of animal rights movements can be solve but live is precious. So, we should protect the animals.