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International Business Environment

Business encompasses activities related to industry and commerce, with international business involving operations across political borders. The business environment consists of various external factors that influence a firm's decisions and operations, including domestic and foreign environments. Understanding these environments is crucial for firms to make informed strategic and tactical decisions to achieve profit and customer satisfaction.

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12 views14 pages

International Business Environment

Business encompasses activities related to industry and commerce, with international business involving operations across political borders. The business environment consists of various external factors that influence a firm's decisions and operations, including domestic and foreign environments. Understanding these environments is crucial for firms to make informed strategic and tactical decisions to achieve profit and customer satisfaction.

Uploaded by

rajeevrawal86
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPTX, PDF, TXT or read online on Scribd
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 Business is defined as a set of activities

relating to industry and commerce


 When business activities are carried
across the political borders of a
country, it is termed as international
business.
A business environment includes
various external actors and forces
that surrounds a firm and impacts
the outcome of its decisions and
operations.
The objective of both domestic
business and international business is
“making profit through customers
satisfaction and social welfare”
CONTROLLA
BLE
ENVIRONME
NT

UNCONTROLLA
BLE
ENVIRONMENT
PRODUCTI
ON

CONTROLLAB
LE-
MARKETIN ENVIR
INTERNATION
G ONMR
AL
NT.
BUSINESS
DECISIONS

HUMAN
RESOUR
CE
1
• DOMESTIC
.
ENVIRONMENT
2
. • FOREIGN
3
. ENVIRONMENT
• GLOBAL
ENVIRONMENT
 These factors operate at
the national level, firms
are generally familiar
with them and are able to
readily react to them

 Some factors of domestic


environment –
1.Competitive structure
2.Economic climate
3.Political and legal
forces
Firms are generally not cognizant of these
factors and their influences on business
activities.
It includes-
1. Geographical environment – country’s
climate, topography, natural resources and people
2. Economic environment – Economic
development, Income( GNP and Per Capita income),
expenditure Pattern, Infrastructure
3. Financial Environment - Monetary and
fiscal policies, commercial and Foreign
investments policies, balance of payment
account
4. Demographic Environment – size, age
and gender wise composition of a population
5. Socio- cultural environment- language,
aesthetics, Education, Religion and superstitions,
attitudes and Values, Material culture,
Technology, social groups and organizations and
 World Economic
Conditions
 International Financial
System
 International
agreements and
treaties
 Regional Economic
groupings
 World wide
economic
recessions
 International Financial
Liquidity or stability
 Working of International
MICRO MACRO
ENVIRONMENT ENVIRONMENT
It affects the firm as well as
These are the Factors in other Factors in the firm’s
the firm’s immediate micro environment
environment Which
directly influence the firm’s
decisions and operations
These includes:
- Geographical
- Economic
These includes: - Financial
- Suppliers
- Socio cultural
- Market intermediaries and
- Political
service
- organizations - Legal
- Competitors - Technological
- Customers
-
 Knowledge of
international
business
environment is
very important.
 Environment
affects a firm’s
strategic as well
as tactical decisions
so it becomes
imperative for the
firm to have in-
depth knowledge of
THANK YOU.

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