Final answer:
Companies must monitor the global business environment, accounting for technology and globalization. Advancements in technology and the Internet have heightened global competition. Analytical models are used to navigate these changes and international cooperation is key for economic recovery.
Step-by-step explanation:
Companies must monitor all the factors in the global business environment to adapt to change as needed. The modern market is heavily influenced by two interconnected shifts: technology and globalization. Due to significant advancements in communications technologies like the Internet, a consumer can now order products from all over the world, which underscores the heightened degree of competition local businesses face. Moreover, the expansion of 'business-to-business' websites facilitates global interactions between buyers and suppliers, further transforming markets and intensifying competition.
Responding to these pressures, companies are recognizing the need for agility in the face of continuous change. Economists address the complexity of changing market factors by employing sophisticated analytical models that account for multiple variables and their interdependencies. This approach helps businesses anticipate and respond to global market dynamics.
Such evaluations are important for ensuring that businesses are not only able to remain competitive but also able to leverage opportunities for expansion and growth. Recognizing the importance of international cooperation and trade, the recent meeting of the World Economic Forum saw trade ministers launching a coalition to promote inclusive cooperation that links climate, trade, and sustainable development, which is poised to play a critical role in global economic recovery.