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Factors of
International
Business
Environment
Presented by: Ashish Kumar Mishra
Vishavjeet Singh
Aryan Malik
Johnson N.B
Presented to : Dr Ram Singh
Professor, MM Institute of Management
Agenda
• Political Environment
• Economical Environment
• Sociocultural Environment
• Technology Environment
• Legal Environment
INTRODUCTION
‘International Business Environment’ is a complex
network of economic, political, legal, and cultural forces
that shape how organisations conduct international
business. It consists of external and internal factors that
impact a company’s success or failure in different
markets.
INTERNAL ENVIRONMENT
• Organization structure.
• Value system.
• Mission and objectives.
• Policies and Procedures.
• R&D.
POLITICAL
ENVIRONMENT
CHALLENGES
• Government policies and regulations
• Political stability
• Government-business relations
• International relations
EXAMPLES
• Trade war between the United States and
China
• The European Union's (EU) sanctions on
Russia following the invasion of Ukraine
Economic
growth
Inflation Exchange rates Interest rates Infrastructure
• Creating
opportunities
for
international
businesses
• Make it
difficult for
businesses to
plan
effectively
• Impact the cost
of imports and
exports
• Profitability and
competitiveness
• Cost of borrowing
capital for businesses
• Investment decisions
• Expansion plans
• Transportation
• Communication
• Energy systems,
Tesla, the electric vehicle manufacturer, and its operations in China.
Example:
Example: Pepsico and Coca Cola
Technological
advancements
Communication
infrastructure
Digital
infrastructure
A.I.
Big data
analytics
Automation
Cloud
computing
Internet
connectivity
Postal
services
TECHNOLOGICAL
Technological
adoption
Telecommunication
networks EXAMPLES: E-commerce platforms like
Amazon and Alibaba
Social media platforms like Facebook
and YouTube provide businesses with
powerful tools for global marketing and
brand awareness campaigns
National Laws
International Treaties
and Agreements
International Law
Regional Trade Blocs
Taxation
Import/Export
Regulations
LEGAL
P OLIT IC AL ECONOMICAL SOCIOCULTURE TECHNOLOGICAL LEGAL
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
CONCLUSION
Identifying Opportunities and
Threats
Identify potential opportunities and threats in the
international landscape
Strategic Planning and Risk
Management
Helps businesses develop effective strategies and
mitigate potential risks
Continuous Monitoring and
Adaptation
Analysis encourages businesses to continuously
monitor
Dr. Ram Singh
And All My Dear
Friends

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factor of international business environment.pptx

Editor's Notes

  1. Ex: Increase Tariffs , Uncertainty for business , Diversification of supply chains 2) Sanction –finance transation, export goods/ technology , higher cost of raw material, reputational risk
  2. Worlds largest mkt for EV , Govt policies Supply chain –major hub for lithium ion bettery 2nd factory – magapack battery