INTERNATIONAL BUSINESS

ENVIRONMENT

PRESENTED BY
Ajesh Mukundan P
+91 9947426820
ajeshmp@gmail.com
 International business is a term used
to collectively describe all commercial
transactions (private and governmental,
sales, investments, logistics, and
transportation) that take place between
two or more nations.
International business environment
 Business does not exist in a vacuum.
 It is affected by innumerable internal
and external factors.
 Internal factors – controllable.
 External factors – not controllable.
 International Business environment is
the sum of these internal & external
factors.
Features of International business
environment
 Complex
 Dynamic
 Multi-faceted
 Has profound consequences
External
 Demographic
 Political - Legal
 Cultural
 Economic environment
 Transportation costs
 Technology
 Geographical
Demographic environment
 Characteristics of population.
Important features:
 Size of population
 Labour force: gender ratio
 Age composition
 F M Ratio
 Life expectancy
Political - legal environment

 Political system: Government

 Legal system

 Political environment: pressure groups,

NGOs etc
Economic environment
 Liberalization of economies
 Global trade environment post WTO
 Multinational trade blocks including the EU
 Technological environment

 Technological changes.
 Innovations.
 Attitude to technological changes.
 Risks & uncertainties associated with
technological changes.
Internal
 Capital
 Man power
 IR
 Management policies
Conclusion
Internal and external factors influence
and impact business.

Control the controllable factors and

manage the uncontrollable.

Success lies in riding the waves and not

in resisting them.