 In this topic, we are going to talk about another constraint on measuring international performance and that is volatility of the global environment. You know that the environment of any organization is rapidly changing, but when the environment goes up to the global level, it means that events which are happening at the local level as well as events that are happening at the global level, they are going to affect how your organization is going to perform in that particular environment. So when there is global turbulence, which affects that particular subsidiary performance, it is essential that long term goals should be flexible in order to respond to potential market contingencies. So there could be a number of reasons, there could be number of factors, events in the global environment which require you not to inflexibly stick to your targets and objectives. If there is an event, if there is situation which is happening in the global environment, that must be taken into account and flexibility must be shown in setting up the criteria or if the criteria are set up and then an event happens, you need to reevaluate the criteria according to that particular contingency to take into account that particular contingency and then calculate your performance. So we as an example, I am going to discuss a few global events which change the landscape of business in the last 50 years, so starting from the collapse of communist rule in the late 80s, you know that since the Second World War, there was this Cold War between Russia and America and to that there were several different constraints on global business but after the communist fall in the late 80s, the global environment opened up, particularly this Russian block that opened up and therefore number of opportunities were created for various different multinational businesses. Then a very important event was adoption of Euro, which meant that the European Union it integrated and consolidated and that led to opportunities and that led to an integrated system of business in the European Union and that meant that it became a business block which had developed its power and was able to manage global dynamics. Then another important global event is the Chinese market reforms, you know that China before the 70s it was completely shut up in its own shell but then in the late 70s and early 80s, they started opening up for business for the rest of the world and they started offering their products, their services, their manufacturing units to come for the rest of the world to get opportunity from and that has led to a completely different dynamic of business in the world with the Chinese market developing and expanding. Then another important, not just event but development in the world arena is the spread of epidemics like SARS, bird flu, dange, Ebola, these are contagious diseases which are pandemics they are not just epidemics, these are pandemics because they have effects across continents so they can be spread very easily and that means that that creates a challenge for mobility, for movement of people across different countries and that is something which is a threat for people and has to be taken into account. Then a very important development particularly for our block of countries is the spread of international terrorism, you know how badly it has affected the Pakistani environment and the overall global environment and it is a threat for global peace but yet it has also created dynamics for different businesses which can be discussed but not in this topic. And then rising all prices that means that the cost of everything which is being sold that is going to be added up. Then high-profile corporate collapses which happened which started happening post 2000 you must be remembering the collapse of Enron which was because of illegal reporting and similar kind of corporate collapses and bankruptcies which were shocking for the world and therefore that also changed the way business is done, it changed the way how transparency is ensured by the organization, it changed the way how rules were framed to make sure that organizations they do not cheat their own people as well as the society. Then adoption of international accounting standards so when you have an international accounting standard it means that your accounting systems they must be according to that international standard and therefore your accounting data becomes comparable. Then moving on there was this global financial crisis of 2008 which badly affected the business arena particularly in the developed world. Then Arab Spring political disturbances starting from 2011 you knew that it started from Tunisia and spread in Egypt and Libya and that moved towards a liberation movement from various different kind of type of rulings and that also affected how the Arab Peninsula that is seen by the world and also the Arab Peninsula itself it reorganized and has started working in another dimension. Finally global warming which creates an environmental threat and because it is an environmental threat it is an economic threat and organizations they have to take measures to make sure that they are carbon CO2 emissions they are a curtail they have to make sure they make products which are environment friendly which are green products which do not affect the environment. So for the last 300 years we were pumping carbon dioxide into the atmosphere but now we've just realized that we have pumped too much carbon dioxide and unfortunately all of our systems our machines our technology that was based on burning this fossil fuels which is called petrol or coal or diesel. These are fossil fuels which emit a lot of carbon dioxide in the environment but suddenly now we have realized that we have reached that level that threshold value after which we will not be able to survive if we keep on pumping carbon dioxide in our air. So now the manufacturing systems the products the way of doing business all of that that needs to change towards a more environment friendly and earth friendly dimension and therefore you can see that the products the machinery the cars the equipment all of them they are now focused towards conserving energy going hybrid using solar energy being electrically powered and all that this is how this is something which has changed the business environment for the entire globe. So according to these various different events the organizations the multinationals they have they had to respond and therefore their performance does not cannot be measured standalone it has to take into account all these challenges which are coming up and more challenges will definitely come up and therefore the organizational strategic people they have to make sure that they take into account these market contingency.