Domestic and global business environment


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This presentation deals about the international business environment. The difficulties of both domestic and global environment

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Domestic and global business environment

  1. 1. By R. Paul Godwin
  2. 2. Business Environment  “Consists of all factors that have a bearing on the business”
  3. 3. Factors:  Political  Legal  Technical  Economic  Social cultural  Etc..
  4. 4. Types of Business Environment  Economic environment.  Non-economic environment.
  5. 5. Economic Environment  Economic Conditions. include gross domestic product, markets for goods and services , foreign exchange reserve, growth of foreign trade, etc.  Economic Policies. (i) Industrial policy (ii) Fiscal policy (iii) Monetary policy (iv) Foreign investment policy (v) Export –Import policy (Exim policy)
  6. 6. Industry policy  The Industrial policy of the government covers all those principles, policies, rules and procedures, which direct and control the industrial enterprises of the country.
  7. 7. Fiscal policy  It includes government policy in respect of public expenditure. Example:  Tax  Public Debt.
  8. 8. Monetary policy  It includes all those activities and interventions that aim at smooth supply of credit to the business and a boost to trade and industry. Example:  Interest rates.  Bank reserves. Etc…
  9. 9. Foreign investment policy  This policy aims at regulating the inflow of foreign investment in various sectors for a firm.
  10. 10. Export–Import policy (Exim policy)  It aims at decreasing the gap between export and import.  The focus now-a-days lies on removing barriers and controls and lowering the custom duties.
  11. 11. Non-Economic Environment  Social Environment.  Political Environment.  Legal Environment.
  12. 12. Social Environment  The social environment of business includes social factors like customs, traditions, values, beliefs, poverty, literacy etc.  For example: During festive seasons there is an increase in the demand for new clothes, sweets, fruits, flower, etc.
  13. 13. Political Environment  This includes the political system, the government policies and attitude towards the business community and the unionism.  Eg: Labour Union.
  14. 14. Legal Environment  This refers to set of laws, regulations, which influence the business organisations and their operations.  Every business organisation has to obey, and work within the framework of the law. Eg: Factory act 1948.
  15. 15. Domestic Business Environment  The domestic factors that affects the firm situated in a domestic country.
  16. 16. Features D.Business environment  Business are carried out in home country only.  It depends on domestic culture of the people.  In case of monopoly, the firm can achieve large profit.  The legal factor do not affect more on domestic environment.
  17. 17. Global Business Environment •The Global Business Environment is that the business carried on globaly.It is influenced by the World Trade Organisation, principles and agreements.
  18. 18. Features G.Business Environment  Doing or planning to expend, Business Globally  Each country or market was assumed to be difficult to reach others.  Global business mainly focused to get the Domestic market of a country.
  19. 19. conclusion  Domestic Environment is the first and foremost step that is taken to establish a successful Global environment.Once the domestic Business is successful that will lead to a higher chances of being very successful at the Global Level.The environment should be properly utilized to get Positive results because over Globalisation might lead to the destruction of the Domestic environment.