This presentation deals about the international business environment. The difficulties of both domestic and global environment

1. By
R. Paul Godwin

2. Business Environment
 “Consists of all factors that have a bearing on the
business”

3. Factors:
 Political
 Legal
 Technical
 Economic
 Social cultural
 Etc..

4. Types of Business Environment
 Economic environment.
 Non-economic environment.

5. Economic Environment
 Economic Conditions.
include gross domestic product, markets for goods and services ,
foreign exchange reserve, growth of foreign trade, etc.
 Economic Policies.
(i) Industrial policy
(ii) Fiscal policy
(iii) Monetary policy
(iv) Foreign investment policy
(v) Export –Import policy (Exim policy)

6. Industry policy
 The Industrial policy of the government covers
all those principles, policies, rules and procedures,
which direct and control the industrial enterprises of
the country.

7. Fiscal policy
 It includes government policy in respect of public
expenditure.
Example:
 Tax
 Public Debt.

8. Monetary policy
 It includes all those activities and interventions
that aim at smooth supply of credit to the business
and a boost to trade and industry.
Example:
 Interest rates.
 Bank reserves. Etc…

9. Foreign investment policy
 This policy aims at regulating the inflow of foreign
investment in various sectors for a firm.

10. Export–Import policy (Exim policy)
 It aims at decreasing the gap between export and
import.
 The focus now-a-days lies on removing barriers and
controls and lowering the custom duties.

11. Non-Economic Environment
 Social Environment.
 Political Environment.
 Legal Environment.

12. Social Environment
 The social environment of business includes social
factors like customs, traditions, values, beliefs, poverty,
literacy etc.
 For example: During festive seasons there is an increase in the
demand for new clothes, sweets, fruits, flower, etc.

13. Political Environment
 This includes the political system, the government
policies and attitude towards the business community
and the unionism.
 Eg: Labour Union.

14. Legal Environment
 This refers to set of laws, regulations, which influence
the business organisations and their operations.
 Every business organisation has to obey, and work
within the framework of the law.
Eg: Factory act 1948.

15. Domestic Business Environment
 The domestic factors that affects the firm situated in a
domestic country.

16. Features D.Business environment
 Business are carried out in home country only.
 It depends on domestic culture of the people.
 In case of monopoly, the firm can achieve large profit.
 The legal factor do not affect more on domestic
environment.

17. Global Business Environment
•The Global Business Environment is that the business carried on globaly.It is
influenced by the World Trade Organisation, principles and agreements.

18. Features G.Business Environment
 Doing or planning to expend, Business Globally
 Each country or market was assumed to be difficult to
reach others.
 Global business mainly focused to get the Domestic
market of a country.

21. conclusion
 Domestic Environment is the first and foremost step
that is taken to establish a successful Global
environment.Once the domestic Business is successful
that will lead to a higher chances of being very
successful at the Global Level.The environment should
be properly utilized to get Positive results because over
Globalisation might lead to the destruction of the
Domestic environment.