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INTERNATIONAL
BUSINESS
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.
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
FACTORS AFFECTING IB
• Political environment
• Economic Environment
• Cultural environment
• Social Environment
• Technological environment
• Legal Environment
• Physical environment
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
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
ECONOMIC POLICIES
• Fiscal policy
• Monetary policy
• Foreign trade policy
• Industrial sector policy
• Privatisation policy
• Foreign exchange policy
• Foreign investment and Technology policy
CULTURAL ENVIRONMENT
Elements of Cultural environment
• Language
• Religion
• Attitudes and values
• Social organisation
• Educational system
• Technology
• Political system
• Legal system
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
SOCIAL ENVIRONMENT
Social factors affecting IB
• Taste of natives
• Language
• Values and beliefs
• Demography
• Literacy rate
• Female work force
• Dual income families
• Impulse buying
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
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
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
INFLUENCE OF PHYSICAL ENVIRONMENT
• Influence of physical environment on IB
• Demand pattern
• Population distribution
• Product adoption
• Disrupt the transportation
• Location of industry
• National disorders
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
COUNTRY ATTRACTIVENESS
• Country Attractiveness Frame work
• Benefits
• Costs
• Risks
• Political risks
• Economic risks
• Legal risks
EVALUATING COUNTRY ATTRACTIVENESS
• Determining international marketing objectives
• Country identification
• Preliminary screening
• In-depth screening/ detailed investigation and shortlisting
• Final selection
• Direct experience
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

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Introduction to IB_1 (1).pptx

  • 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
  • 7. ECONOMIC POLICIES • Fiscal policy • Monetary policy • Foreign trade policy • Industrial sector policy • Privatisation policy • Foreign exchange policy • Foreign investment and Technology policy
  • 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