AS S IGN MEN T NO .

INT ER NATIONAL
BUSINESS
PR ESE NT E D B Y: C J DE LA C RUZ SE R NA
 INTERNATIONAL
BUSINESS
INT ER NATION AL B U SINESS REFERS TO AN Y
BU SI NESS THAT OPERATES ACROSS IN TER NATION AL
BOR DER S.

E XA MPL ES:

• SELLIN G OF G OODS TO OT HER COU NT RIES.

• A COMPANY TH AT OU TS OU RCES IT S CU STO MER
SERVIC E TO AN AG ENC Y AB ROAD.

G LOBALIZAT ION CR EAT ES GR EAT ES

O PPORTU N ITIES FOR INTER NATION AL B U SINESS
 INTERNATIONAL TRADE
INT ERNATI ON AL T RADE IS TH E EXC HANG E OF G OODS OR
SERVI CE B ETW EEN AT LEAST TWO DIFFEREN T COU N TR IES. T HE
EXCHANG ES CAN B E IMPORT S OR EXPORT S.

IMPORTS
GOODS OR SERV IC E B ROU G HT
IN TO T HE DOMES TIC COU N TRY.

EXPORTS
G OOD OR SERVIC E SOLD TO A
FOREIG N COU NTRY.
 IMPORTANCE OF
INTERNATIONAL BUSINESS
1 MAR KE T E XPAN SION

2 COST ADVANTAG E

3 EC ONOMIES OF SC AL ES

4 BR IN GS FOR EIGN E XC HANG ES

5 EMPLO YME NT O PPORT UNITIE S

6 GOV ERN ME NT SUPPORT

7 DIST R IB UT IO N O F R ISKS

8 IMPROV E INTE RN AT IONAL RE L AT IO NS

 ANALYZING THE BUSINESS
ENVIRONMENT OF A FIRM

POL ITICAL FACTOR S E CO NOMIC FAC TORS

A nalyzi ng t he ext ent t o whi ch gove rnm ent

Econo mic fac t ors exp ress ly fi n ancia l in
and gove rnm ent policy m ay im p a ct an
nat ure like i nt e re st rat e s, infl ati o n, a nd
o rgan isati on. It inc ludes tra de, fi sca l a nd
fore ig n exc hange rat e s.
t axati on p olic y.

EXA MPL E E XAMPLE

Inc reas ing int e rnati onal t rade agre em ent s The analysis vi ews t he slow but st abl e
a nd evo lving public hea lt h poli cie s t hat e cono mi c grow t h of deve lop ed co unt ri es as
leads f ast - fo od compa ny like Mcdo nalds an op p ort uni t y fo r McDona ld’s t o g row a nd
t o im p rove t hei r product s. i ncre ase t he st abili ty of it s bu sine ss.
 ANALYZING THE BUSINESS
ENVIRONMENT OF A FIRM
L E GAL FA CTOR S
Know ing what is a llowed wit hin t he
t e rrit ori es t he compa ny operat e i n. L ike
e mp loym ent and consumer laws, he alt hy an d
s afety, a nd t rade regulati on and re st ri cti ons.
E XAMPL E
Incre asi ng he alt h regulati on s in workp lace s
a nd sch ool s and ri sing l ega l mi nimum
wa ges . Mcdonalds opti mi ze it s effi cie ncie s
t o mai nt a in com peti ti ve ne ss .
T E CH NOL OGICA L FACTOR S
Co nside r t he rat e of t e chno log ical
i nn ovati on and develo p m ent ike a ut o mati on ,
re se arch and devel op m ent , c ybe rse cuti t y
a nd t ec hnolo gy infrast ru ct ure.
E XAMPLE
Mcd onal ds ma ximi ze t he be nefi t s of
t ech nolog ica l t rends and re so urces avai lable
t o t he re st a urant cha in and co me up w it h
s elf orde ring ki osk.