Impact On International Business.pptx

DOMESTIC ENVIRONMENT  FOREIGN ENVIRONMENT  GLOBAL ENVIRONMENT 

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Domestic Environment Commercial activities conducted within a nation or a commercial entity that conducts economic transactions inside the borders of its home nation.

They are  Economic Environment  Political Environment  Socio-Cultural Environment  Technological Environment  Legal Environment

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Economic Environment The economic environment is a combination of various economic factors which have their effect on the working of the business. These factors influence the buying behavior and spending patterns of consumers and institutions.

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Political Environment Political Environment is the state, government and its institutions and legislations and the public and private stakeholders who operate and interact with or influence the system.

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Socio-Cultural Environment A set of beliefs, customs, practices and behavior that exists within a population. International companies often include an examination of the socio-cultural environment prior to entering their target markets.

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Technological Environment External factors in technology that impact business operations. Changes in technology affect how a company will do business. A business may have to dramatically change their operating strategy as a result of changes in the technological environment.

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Legal Environment The legal environment facing businesses operating internationally is not simply a scaled-up version of domestic law. Businesses are faced with legal rules derived from multiple sources, and enforced by bodies with fragmented and overlapping jurisdictions.