This document outlines many factors that affect international business. It discusses positive factors such as electronic fund transfers, technological innovation, and evolving legislation. It also examines difficulties like differences in economic, cultural, and political environments between countries. The document then analyzes how the political, economic, cultural, technological, legal, social, and physical environments can each influence international business in their own way. It provides examples of determinants within each environment and how businesses must evaluate different country attributes when determining where to operate.
2. POSITIVE FACTORS AFFECTING
INTERNATIONAL BUSINESS
1.Electronic Fund Transfer
2.Technological Innovation
3.Dissolution of Communist Markets
4.Legislations Evolving
5.Customer demands
6.Taxation Laws.
3. DIFFICULTIES IN DOING INTERNATIONAL
BUSINESS
1.Economic environment
• There are countries which are developed, and some may be emerging.
There may be a difference from education to infrastructure
2.Cultural Environment
• The cultural environment of one country is different from another country.
3.Political Environment
• The political environment of every country is different. It affect daily doing
business, Bangladesh, Malysia and Vietnam, China
4. FACTORS AFFECTING IB
• Political environment
• Economic Environment
• Cultural environment
• Social Environment
• Technological environment
• Legal Environment
• Physical environment
5. INFLUENCE OF POLITICAL ENVIRONMENT ON IB
• The political environment of every country is different. It affect daily doing
business, Bangladesh, Malysia and Vietnam, China
• – political system as basis , single or multi party system
• Economic system as basis - communist theory, Socialism or capitalism
• Influence of Economic environment
• Political ideology
• Political stability
• Govt relations with other countries
• Defense and military policy
• Thinking of opposition parties one business
• Policies toward international marketing
• Govt control and restrictions
6. ECONOMIC ENVIRONMENT-
DETERMINANTS OF ECONOMICAL ENVIRONMENT
Economic factors in economic
development
• Capital formation
• Natural resources
• Marketable surplus of agriculture
• Conditions in Foreign Trade
• Economic system
Non Economic factors in economic
development
• Human resources
• Technical knowhow and general
education
• Political freedom
• Social organisation
• Corruption
• Desire to develop
8. CULTURAL ENVIRONMENT
Elements of Cultural environment
• Language
• Religion
• Attitudes and values
• Social organisation
• Educational system
• Technology
• Political system
• Legal system
9. INFLUENCE OF CULTURAL ENVIRONMENT ON IB
Elements of Cultural environment
• Culture determine good and services
• Culture determine Attitudes to work
• Culture and global business
• Culture and competitive advantage
• Culture and strategy
10. SOCIAL ENVIRONMENT
Social factors affecting IB
• Taste of natives
• Language
• Values and beliefs
• Demography
• Literacy rate
• Female work force
• Dual income families
• Impulse buying
11. SOCIAL ENVIRONMENT
Influence of Social factors on IB
• Behaviour, personality, attitude thinking pattern
• Consumption behaviour
• Attitude towards work
• Degree of individualism/collectivism
• Attitude towards pollution consumerism
• Work ethics, corporate governance, and social responsibility
• Knowledge about rights and duties
• Social division
12. INFLUENCE OF TECHNOLOGICAL ENVIRONMENT
• Influence of technology on society
• raising customer expectations, complicated systems, social change
• Economic effects of technology
• Increase in productivity
• Necessity on spending on R&D
• Job trend to become more intellectual and knowledge oriented
• Issues related to techno structure
• Increased regulation and stiff opposition
• Raise and fall of products and firms
• Technology root level Alterations: Technology and organisational structure, Fear of risk, Resistance to change
13. INFLUENCE OF LEGAL ENVIRONMENT
• Climate
• Natural resources
• Non renewable Energy
• Renewable energy
• Non fuel minerals
• Topography
• Mountains and plains
• Deserts and forests
• Bodies of water
14. INFLUENCE OF PHYSICAL ENVIRONMENT
• Influence of physical environment on IB
• Demand pattern
• Population distribution
• Product adoption
• Disrupt the transportation
• Location of industry
• National disorders
15. INFLUENCE OF PHYSICAL ENVIRONMENT
• Influence of physical environment on IB
• Degradation
• Globalisation
• Concern for natural environment
• Intellectual property
• Product liability and safety
• Competition among business
• Briefs and corrupt practices
• Advertising and sales promotions
• Contracts
16. COUNTRY ATTRACTIVENESS
• Country Attractiveness Frame work
• Benefits
• Costs
• Risks
• Political risks
• Economic risks
• Legal risks
17. EVALUATING COUNTRY ATTRACTIVENESS
• Determining international marketing objectives
• Country identification
• Preliminary screening
• In-depth screening/ detailed investigation and shortlisting
• Final selection
• Direct experience
18. EVALUATING COUNTRY ATTRACTIVENESS
Criteria for assessing countries attractiveness
• Market potential
• political legal and financial environment of a country
• Marketing support infrastructure in the country
• Brand/company franchise relative to competing product and
companies
• Degree of market fit with company polices, goals and resources