Factors affecting international Business.pptx

Factors affecting international business

1. factors affecting international Business

2. Positive factors affecting international Business Electronic Fund Transfer Technological Innovation Dissolution of Communist Markets Legislations Evolving Customer demands Taxation Laws .

3. Difficulties In Doing International Business Economic environment There are countries which are developed, and some may be emerging. There may be a difference from education to infrastructure Cultural Environment The cultural environment of one country is different from another country. 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 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