4. Whoa! That’s a big number, aren’t you proud?
4
UNCONTROLLABLE
VARIABLES
Domestic
Environment
Foreign
Environment
Global
Environment
5. That’s a lot of money
Total success!
And a lot of users
5
Competitive
Structure
Economic
Climate
Political and
Legal
Forces
Domestic
Environment
6. That’s a lot of money
Total success!
And a lot of users
6
Foreign
Environment
Geographic
Environment
Economic &
Financial
Environment
Demographic
Environment
Socio-
Cultural
Environment
Economic
Environment
Legal
Environment
Ecological
Environment
7. That’s a lot of money
Total success!
And a lot of users
7
Global
Environment
International
Economic
Environment
Regional
Economic
Groups and
Agreement
International
Financial
Institutions
and System
International
Trade
Organisation
& Agreements
8. Relevance of International Business Environment
8
•In order to find the market potential of foreign market
•To decide on how to enter those markets
•To decide scale of production
•To decide on labour deployment
•To decide how to finance firm’s foreign operations
•To decide the marketing Mix
•To decide compensation and employment