This document discusses factors affecting international business. It defines international business as the exchange of goods and services among individuals and businesses in multiple countries. It then outlines some of the key challenges for organizations operating internationally, such as navigating different regulatory bodies and understanding varying customer tastes. The main factors said to influence international business are identified as political, economic, socio-cultural, technological, and legal factors. Specific examples are provided for some of these factors, such as differences in political stability, labor laws, inflation rates, culture, and regulations across countries.

1. FACTOR AFFECTINGFACTOR AFFECTING
INTERNATIONAL BUSINESSINTERNATIONAL BUSINESS
Presented by : Hemangi Kotadiya
Presented to : snehal ma’am
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2. INTRODUCATIONINTRODUCATION
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3. Definition Of InternationalDefinition Of International
BusinessBusiness
 “The exchange of goods and services
among individuals and businesses in multiple
countries.”
 “A specific entity, such as a
multinational corporation or international
business company that engages in business
among multiple countries.”
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4. CHLLANGES FOR ANCHLLANGES FOR AN
ORGANIZATIONORGANIZATION
• Navigation from home country to the host
country
• Development of proper business system
• Knowledge of all regulatory bodies both in
home and host countries
• Knowledge of customer's changing taste
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5. CON……CON……
• Customer’s attitude towards foreign goods
• Revenue earning
• Interaction with right people to make
business deal effective
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6. FACTOR AFFECTINGFACTOR AFFECTING
INTENATIONAL BUSINESSINTENATIONAL BUSINESS
Political Factors
Economic Factors
Socio Cultural Factors
Technological Factors
Legal Factor
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7. Political FactorsPolitical Factors
• Political stability
• Labor laws
• Tax policy
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8. POLITICAL STABILITYPOLITICAL STABILITY
• Lack of political stability in a country effects
business operations. This is especially true for the
companies which operate internationally.
• For example, an forceful takeover could
overthrow a government. This could lead to riots,
raiding and general disorder in the environment.
These disrupt business operations. Sri Lanka was
in a similar state during a civil war. Egypt and
Syria faced disturbances too.
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9. LABOR LAWLABOR LAW
IN U.S.
• The occupational safety and health Act.
• The fair labor standard Act.
• The employee retirement income security
Act.
IN INDIA
• Hours of work in the industry
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10. CON…CON…
• Minimum age employment
• night work for young persons
• Maternity production
• Night work for women
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11. ECONOMIC FACTORECONOMIC FACTOR
• Economic growth
In India : 6.1%
In China : 6.8%
• Interest rates
In India : 6%
In China : 4.35%
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12. CON……..CON……..
• Inflation rate
In India : 2.36%
In China : 1.40%
• National income
In India : 8.594 trillion dollar
In China : 21.37 trillion dollar
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13. SOCIO CULTURL FACTORSOCIO CULTURL FACTOR
• Culture sensitivity
• Size of working population
In India : 29650.00(thousand)
In China : 77603.00 (tens of thousand)
For example
in India people (Hindu) do not take beef
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14. TECHNOLOGICAL FACTORTECHNOLOGICAL FACTOR
• Extend of technological availability
• Availability of technocrats
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15. LEGAL FACTORLEGAL FACTOR
• current home market legislation, future
legislation
• Environmental regulations, employment
law, consumer
• industry-specific regulations, competitive
regulations
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