International forces in business environment consist of factors like global economic trends, world politics, international rules and regulations, and host country political climate. Key international organizations that influence the business environment include the WTO, IMF, World Bank, and SAFTA. The document also discusses factors in the political, economic, social, technological, legal and environmental environments that affect business operations internationally. These include variables such as exchange rates, corruption levels, economic conditions, social attitudes, the pace of technological change, environmental regulations, and legal compliance requirements across different regions. Understanding these external forces is important for organizations to identify opportunities and threats in the international arena.

1. INTERNATIONAL FORCES IN
BUSINESS ENVIRONMENT
Group Members : SID G

2. INTERNATIONAL BUSINESS
ENVIRONMENT:
In a precise form we can say that, International
Business Environment consists of all internal &
external business environmental factors and some
other international specific factors also, such as
global economic trends, world politic, recent world
order, international rules and regulations, host
country’s political climate etc.

3. International Organization
I. GATT(The General Agreement On Traiffs And Trade): At the
time of second world war ensure a stable trade and economic
enviroment.The main objective of GATT to improve the world
production and exchange of goods.
II. WTO (world trade organisation):
Formation 1 January 1995
Headquarters Geneva, Switzerland
Membership 149 members
Official languages English,French,German and Spanish
Director General Pascal Lamy
Budget 160 million Swiss francs
Staff 630 .

4. Continued.
3)SAFTA(south asian free trade area):It creates a framework for the
creation of a free trade zone covering 1.4 billion people in India,
Pakistan, Nepal, SriLanka, Bangladesh, Bhutan and Maldives. The
seven foreign ministers of the region signed a framework agreement
on SAFTA with zero customs duty on the trade of practically all
products in the region by end 2012.
(4)IMF(International Monetary Fund): It started it operation on
March 1,1947.the main purpose of the IMF is to Promote Monetary
consultation, cooperation and collaboration.
(5) WORLD BANK : Also knows as The International Bank for
Reconsutruction and Development (IBRD) is an inetrnational
Financial institution whose purpose include assisting the
development of its member nations territories, promoting ans
supplimenting private foreign investment and promoting long range
balance growth in international trade.

5. International Forces In Business
Environment
Critical
forces
Exchange rate
PESTEL Model
Global Factor
Local
Forces
Level of
Education
Depth and
Breadth of
Corruption
Perception of
People
Towards Origin

6. Exchange rate:

7. PESTEL ANALYSIS

8. INTRODUCTION
An organisation's success is influenced by factors operating in it’s internal and external environment;
an organisation can increase its success by adopting strategies which manipulate these factors for its
advantage. A successful organisation will not only understand existing factors but also forecast
change, so that it can take advantage of change within the environment in which it operates.
PEST analysis
It is used to identify the external forces affecting an organisation. This is a simple analysis of an
organisation’s Political, Economical, Social and Technological environment. A PEST analysis
incorporates legal and environmental factors is called PESTLE analysis.

15. POLITICAL
ENVIRONMENT

16. POLITICAL FACTOR
Political
Factors
Government
Stability
Employment
& Operational
Laws
Government
Leadership
Trade
Restrictions
of Reforms
Tax
Regulation
Corruption
Levels
Bu reaucracy
Issues
Stability of
Neighbors

17. TAXREGULATION
• The rate of the individual and corporate tax has been
reduced in orderto bring more people in the taxnet.
• Local ArmsOf MNCsCome UnderServiceTax
Scanner.
• Heavy reduction in the import duties has been
implemented.
TRADERESTRICTIONS OF
REFORMS
• FERARestrictions Removed.
• RTPRestrictions Removed.
• FreeEntry of Foreign
Investment.
• Reduction in Restrictionsof Export-
Import.

18. GOVERNMENT LEADERSHIP
• Establishment of Foreign
Capital Market & Capital
Market Reforms.
• Providing Incentive forExport.
• Statutory Liquidity Ratio
(SLR)has been lowered.
CORRUPTION LEVELS
• 85thRank InCorruption
Perception Index 2014.
• Countries at the bottom need to
adopt radical anti- corruption
measures in favour of their people.

19. BUREAUCRACY ISSUES
• Abolition of Licensing.
• Freedom to Import
Technology.
• Contraction of Public Sector.
• MRTPRestrictions Removed.

20. Economic Environment
• Itis the environment in which businessoperates.
• Itincludes system, policies and nature of an economy, trade
cycles, economic resources, level of income etc.
• Itis very dynamic and complex innature.

21. Elements of Economic Environment{EEE}
EEE
Economic
condition
Economic
system
Economic
policies
Economic
legislation

22. Importance of Economic Environment
• Helps to estimate the markettrends.
• It’sa leading indicator of government goals and its planned use of
economic tools and marketreforms.
• Determine opportunities andthreats.
• Giving directions for economicgrowth.
• Help to deal with businesschallenges.

23. Factors affecting Economic Environment
•Growth rate
•Inflation
•Business
cycle
•Laborcost

24. Limitations of Economic Environment
• Reduces the individual freedom of choice.
• Less scope of foreign investment.
• Imposes too manyrestrictions.

25. • Sociological attitudes and profiles areconstantlychanging.
• These factors scrutinize the social environment of themarket,
and gauge determinants like cultural trends, demographics,
population analytics etc.
SOCIAL FACTOR

26. This Social created by a society-at-a-large in which a business functions
can be referred to as its external social environment. If a business operates in a
multi –cultural society, then the social external social environment is even more
complicated because the environment will consist of diverse sub populations with
their own unique values, beliefs and customs.

27. Tounderstand the impacts better, you might need to study the factors
indetails.
Some of the Social factorsare:
Lifestyles
Buying habits Population growth rate
Emphasis on safety Health consciousness
Family size andstructure
Attitudes towards saving and investing

28. Technological Environment
• “Technological Environment means the development in the field of
technology which affects business by new inventions of productions and
other improvements in techniques to perform the business work”.
• External Factor in Technology that impact business operations.

29. Features of Technical Environment
• The pace of change in technology is becoming more rapid, and often
changes that impact your market come from unexpected sources.
• Technological factors can be broadly divided into twoareas:
manufacture and infrastructure.
• Organizations that fail to keep up with technologicaladvances leave
opportunities for a smaller producer or new entrant to enter their market.

30. Technology
Factors
Rateof
Change
Use of
Outsourcing
Network
Coverage
Eliminates
Bottle Neck
Knowledge &
Management
System
Quality
& Price
Intellectual
Property
Patents &
Licenses
Research
&
Development
Production
Efficiency
Government
Activity &
Legislation

31. Importance of Technical Environment
• Automation
• Improved quality of parts and end product
• Incentives
• Significant costsavings
• Use of outsourcing to control costs and offer greaterflexibility

32. ENVIRONMENTAL FACTORS
• Environmental factors include those factors that influence or determine
surrounding environment.
• Environmental factors talk about how people’s perception towards
environment can affect business.
• These factors have become important because of increasing scarcity of raw
materials, increasing pollution, amount of waste generation and it’s disposal.

33. Environmental factors
 Geographical location
 Climate change
 Disposal of waste material
 Energy availability andconsumption
 Recycling procedures
 Limited natural resources
 Attitude towardsenvironment

34. Legal Environment
Legal environment of business means all factors relating to laws and legal orders which affect business
and its working. Law:system of rules, usually enforced through a set of institutions
e.g., employment laws, health and safety regulations, IPRlaws, copyright, patent, discrimination laws,
and antitrust laws.
• Regional Laws
• Law Enforcement
• Court System

35. Examples
• Facebook :Law suited in India, Privacy issues, Social monitoring.
• Tata Motors :Safety rules, Quality Control, Vehiclerules.
• Infosys: ITrules, Piracy Protection, Software Import rules & regulation.
Organization Government

36. Legal Environmental aspect of a Business
Indian contract act 1872
Indian sale of goods act 1930
Indian partnership act 1932
Industrial dispute Act1947
Minimum wages act 1948
Indian companies act 1956
Foreign exchange regulation act (FERA) 1973
Foreign exchange management act1999
Monopolies and restrictive trade practice act1969
 Consumer protection act1986

37. Indian income tax act 1961
Central excise act 1944
Security exchange board of India act 1992
Banking regulation act 1949
Chartered accountant act 1949
Information technology act2000
competition act 2002
right to information act 2005
Micro, Small and Medium Enterprises Development Act,2006
 Commissions for Protection of Child Rights Act,2005

38. All organizations need to identify external factors withintheir
environment that could have an impact on theiroperations.
Many of these will be things that the organization has nocontrol over,
but the implications of which need to be understood.
CONCLUSION