Physical/Geographical
Factors affecting IB
Presented by-
Sumit Tomar
sumittomar0000@gmail.com
Contact: 7060693930
1. Climate
• More hard work for countries having
unfavorable climate
• Important role of rainfall
• Poorest countries – in tropics – disease
flourish
Source: https://www.slideshare.net/manumelwin/investment-environment-
international-business
2. Location
Source: http://www.lsainsider.com/location-is-the-future-of-digital-
advertising-heres-why/archives
Factors affecting location
• Market
• Availability of labour
• Power supply
• Transport and communication
• Water supply
Source: http://www.yourarticlelibrary.com/industries/factors-influencing-
the-location-of-industries-geographical-and-non-geographical-factors/19695/
Intern'l Org based on location
• EEC
• SAFTA
• NAFTA
• ASEAN
• Mercosur
Source:
https://www.google.co.in/url?sa=t&rct=j&q=&esrc=s&source=web&cd=3&cad=rja&uact=8&ved=0ahUKEwiLvK7T3dvTAhVJMI8KHe
5JDVYQFggwMAI&url=http%3A%2F%2Fclic.cengage.com%2Fuploads%2F99904f04a7612c1e3c628b5f9b44a9ef_1_4818.pdf&usg=AFQj
CNGkCBRuKGe50MuU-q5RuduoaHI2yg&sig2=n_2gvhODZwmDo5FWbaJMQA/
Source: https://image.slidesharecdn.com/managementofnaturalresources-130509061140-
phpapp01/95/management-of-natural-resources-4-638.jpg?cb=1368079957/
• The principal factor affecting the development
of an economy is the natural resources.
• Some places have distinct advantage over
other.
• American great plains are described as “SAUDI
ARABIA OF WIND ENERGY.
3. Natural Resources
Source: http://www.yourarticlelibrary.com/economics/factors-that-influence-the-economic-
development-of-a-country/5942//
INTERNATIONAL TRADE IN AN ERA OF
RELATIVE RESOURCE SCARCITY...
EXPORT PROTECTIONISM:- EXPORT
RESTRICTIONS ON FOOD, ENERGY, &
MINERAL.
EXPORT RESTRICTIONS ON EXHAUSTIBLE
RESOURCES.
GOVERNING TRADE IN NATURAL
RESOURCES.
Source: http://www.ictsd.org/bridges-news/biores/news/international-trade-in-an-era-of-
relative-resource-scarcity
4. Stability
• Environmental Risks
Natural Catastrophe
• Man made physical Risks
Interstate conflicts
Terrorist attacks
Source: https://www3.weforum.org/docs/Media/TheGlobalRisksReport2016.pdf
Source: https://www.weforum.org/agenda/2016/01/what-are-the-top-global-risks-for-2016/
Doing Business 2017 Rankings
Source: http://www.doingbusiness.org/rankings
Conclusion
Business is not all about the tactics and
strategies which we make in four walls, it also
depends upon the external factors
1. Climate
2. Location
3. Resources
4. Stability
THANK YOU

Physical/geographical factors affecting ib