International business environment

1. INTERNATIONAL BUSINESS
ENVIRONMENT
BY
SYED AMAAR
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2. What is International Business?
International business consists of
transactions that are devised and
carried out across national borders
to satisfy the objectives of
individuals, companies, and
organizations.
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3. Environment
Environment means
surrounding.
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4. Business
Environment
Business Environment means the
factor/activities those surround the
business.
In Other Words“business environment mean the factors
that effect or influence the business”.
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5. Example
The present day, business
environment provides wide
opportunity for internet. Similarly,
environment in India provides
opportunity for production and
selling of fuel saving motor
bicycles. European climatic
condition provide the opportunity
for woolen and leather garments.
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6. Factors Affecting Business
. Social and Cultural
factors (S)
Technological Factors
(T)
STEPIN Economic Factors (E)
Political/Governmental
Factors (P)
Natural Factors (N)
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International Factors (I)

7. Business Environmental Factors
Business Environmental Factors
are broadly divided into internal
environmental factors and
external environmental factors.
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8. This STEPIN comes from external environment.
Internal Environment
Organisation structure, production, finance, marketing, human
resource, R&D.
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9. 1.Social and Cultural
Environment:-
Social and Cultural Environment factors in
various countries of the globe affect the IB.
These factors include attitude of the people to
work, attitude to wealth, family, marriage,
religion, education, ethics, human relations,
social responsibilities etc.
Culture is, “the thought and behaviour patterns
that member of a society learns through
language”.
“Cultures change gradually picking up new
ideas and dropping old ones.”
Social Environment consists of religious
aspects, language, customs, traditions,
beliefs, tastes, living habits, dressing habits
etc.
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10. 2.Technological Environment:-
Technological Environment has
significant and direct influence on
business in general and IB in
particular.
Technology changes at a faster
rate. Infact, it brings change in the
society, economy and politics.
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11. Influence Of Technology:-
Technology influences the
way we live, we cook, we
drink, communicate,
preparing for a class etc.
Hence, we now discuss the
economic environmental
factors of the global
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countries.

12. 3.Economic Environment:-
International business is mostly and directly
influenced by the economic environment of various
countries.
Infact, international economic environment and
global business interact with each other.
Global economy has undergone a sea change
during the last 50 years.
The results of these changes are emergence of
global markets, establishment of world trade
organisation.
Thus, international business contributes for the
economic development.
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13. 4.Political Environment:-
Political Environmental factors also influence
the operations of international business firms
enormously. The influence of the political
system of a country influences the business
from multi-angles; viz. deciding, promoting,
fostering, encouraging, sheltering, directing
and controlling the business activities.
[countries with stable political system enjoyed
the successful business operations. USA is
the best example].
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14. Conclusion:-
Hence, the study of environmental
helps the business to formulate
strategies and run the business
efficiently in the competitive
global market. Thus, business
depends upon environmental
dynamics.
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15. THANK
YOU
Presentation by:
Syed Amaar
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