environment of international business- mba

2.  Social Environment
 Political Environment
 Economic Environment
 Legal Environment
 Technological Environment

3.  Social environment of business means all
factors which affects business socially . Every
business works in a society , so societies '
different factors like family , educational
institutions and religion affects .
 the environment in different countries is
different.
 factors to the home environment of the
organization, influences decision-making on
resource use and capabilities.

4.  Every co. is abide by government rules and
regulations of a country under which the firm
operates. Political system, political parties in
power, political parties in the opposition,
political maturity of the parties, number of
political parties, political awareness of
people, political stability and the like have
great impact on the business environment in
a country.

5.  Political decisions inevitably affect the
economic environment.
 Political decisions also influence the social
and cultural environment of a country.
 Politicians can influence the pace at which
new technologies appear and are adopted.

6.  Political ideology refers to, ‘the body of ideas,
theories, aims and means to execute the ideas, adapt
the theories and fulfill the aims that constitute a
sociopolitical programme for action’. Depending on
the mix of different ‘ideas, theories, aims and
means’, there exists Pluralism, Democracy and
Totalitarianism as alternative ideologies.
 Pluralism: It involves coexistence of different ‘ideas,
theories, aims and means’.
 Totalitarianism: It involves, ‘only one idea, theory,
aim and means’.
 Democracy: It involves, a mix of pluralism and
totalitarianism. There used to be individual freedom
with checks and balances.

7.  The technological environment comprises factors
related to the materials and machines used in
manufacturing of goods and services.
 The organization's receptivity and willingness to
adopt to new technology, as well as the willingness of
its consumers to do likewise, influences decisions
made in an organization.
 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.

8.  It is related to all the factors that contribute to a
country’s attractiveness for foreign business, such as
monetary systems, inflation and interest rates. Global
Business Economic Activities
 Governments of different countries use various
techniques to encourage and discourage global
transactions. When governments favor international
trade, they create a friendly environment in the form
of free trade zones, free trade agreements and
trading blocs. On the contrary, when they want to
shield their countries from international competition,
they institute trade barriers and protectionist
measures such as tariffs, quotas, even licensing
requirements.

9.  Exchange Rates
Transactions between different countries around the world
create a need for money exchange. This need comes into
play because each country has its own currency system.
When exporters from France sell goods or services to
Brazil, they need to be paid in Euro. A company usually
likes to receive its payment in its home currency. As a
result, companies need to convert currencies by buying or
selling the currency of one country to another. This is
done by using the exchange rate of different available
markets such as the spot market, forward market and the
future market depending on the ultimate goals. At this
stage, the success of an international company is relative
to the currency of the country where it operates.

10.  Every country has its law ,a co. is abide by
these laws for as long as it continues to
operate there. 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.

11.  Private trade law: for example, types of international sale
contract, mechanisms for payment and security, the
insurance of goods in transit, conflicts between the laws of
different trading countries, contracts for the international
carriage of goods by sea, and dispute resolution.
 International trade and investment law: the national and
international rules that facilitate economic integration
between countries, including the World Trade Organization
and regional and bilateral trade and investment agreements.
 International competition law: analysis of the legal and policy
issues associated with the control of restrictive business
practices and anti-competitive mergers in international
markets.
 International finance law and securities regulation: the global
governance of securities and financial markets and the
consequences for, and strategies open to, the New Zealand
legislature.