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
Political Environment
• 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
