International Business

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International business consists of transactions across national borders that satisfy objectives of individuals, companies, and organizations. It offers consumers new choices, permits acquiring a wider variety of products, and facilitates mobility of labor, capital, and technology. However, political environments can change and create challenges for multinational corporations, as governments have differing systems and stability levels between countries and regions. For example, China is an emerging economic power balancing domestic needs with opening its economy through globalization efforts like authorizing new stock listings and reducing state enterprises.

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conomic Environment refers to all those economic factors, which have a bearing on the functioning of a business. Business depends on the economic environment for all the needed inputs. It also depends on the economic environment to sell the finished goods. Naturally, the dependence of business on the economic environment is total and is not surprising because, as it is rightly said, business is one unit of the total economy. Economic environment influences the business to a great extent. It refers to all those economic factors which affect the functioning of a business unit. Dependence of business on economic environment is total — i.e. for input and also to sell the finished goods. Trained economists supplying the Macro economic forecast and research are found in major companies in manufacturing, commerce and finance which prove the importance of economic environment in business. The following factors constitute economic environment of business: (a) Economic system (b) Economic planning (c) Industry (d) Agriculture (e) Infrastructure (f) Financial & fiscal sectors (g) Removal of regional imbalances (h) Price & distribution controls (i) Economic reforms (j) Human resource and (k) Per capita income and national income Credits : Christ uni.

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