An Overview Of International Business Environment Study

In this article we are going to give a brief overview of IBE commonly known as International Business Environment.

Urbanization has given rise to globalization in the International market. Due to globalization independent relationships are being built among people from all parts of the world. This is nurturing their business in a great way. 

We can connect to people all over the world as a result the business houses are getting quality manpower at a much cheaper rate. So, we can say that International business has a great platform in the recruitment market.

Another segment where we can see International business spreading is the field of commercial transactions. These include the investment market, sales market and transportation market.  These transactions are being undertaken by private companies. International Business Assignment Help comprised team of writers from all corners of the world who can help students with their business assignments online.

Different Aspects Of IBE

Some of the important aspects of the International Business are-

1. International operations differ from domestic operations when it comes to business.

2. The physical, social and competitive conditions affect the business operations which varies in different countries.

3. The government regulations in every country is different which also affects the way an International business will operate.

Business environment can be differentiated in different forms namely- 

i. Import and Export, ii. Licensing, iii. Franchising, iv. Joint ventures and foreign direct investment. The different forms of International business have different natures and work in different ways.

We have a lot of advantages because of the intervention of International business in the global market.

i. IBE helps the business to expand beyond its ordinary reach.

ii. It is a good exposure for growing the business at international platform.

iii. Since the working style is very different from domestic businesses it helps in improving management techniques whether it is product or service related.

iv. It takes care of the requirements of the business in a much better way and helps in the mutual growth of the business. 

Types Of Environment That Influence International Business

International Business is affected by four different kinds of environment-

1. Political Condition Of The Country- There are different kinds of political systems for example democracies, constitutional monarchies, dictatorships etc. Every country has their separate rules and regulations.

• International Business greatly depends on whether the approach of the government is restrictive or facilitating towards the business. 

• Whether the government is offering any incentives for that business. Offering government incentives creates a positive impression which helps in the growth of International Business.

• Legal restrictions from the government creates hinderance in the growth of any international business for example in case any specific license is required for a particular nature of business or there is any kind of reservation in a particular sector.

• There are a set of instructions that we need to follow for any kind of business on import and export, that we are intending to do internationally. Lack of knowledge may cause a lot set backs in the International business.

• Similarly, there are a lot of set procedures in order to set up an International Business that need to be followed. This leads to a lot of paper works which may slow down the business if we are not accustomed with the procedures.

2. Economic Conditions Of The Country- The economic conditions of the country also effect the growth and implementation of International business to a great extent.

Some of the ways in which it effects the business are-

• The levels of national and per capital income effects the international business because it involves different currency values.

• Both direct and indirect taxes affect the International Business Environment because the cost of a product or service offered to an individual varies on the amount of taxes to be paid.

• The salary and wages are different in different countries so the  net salary paid to the employees involved in the operations of International Business also plays a big role.

3. Technological Environment Of The Country- The biggest requirement in the International Business Environment is technology. Physical meetings inflate the travel expenditure so in order to pull out profits in an IBE a technologically sound environment is the biggest necessity.

Power shortage, server issues can lead to massive disruption.

4. Cultural Environment Effecting International Business- Culture plays a key role in international business because whether its domestic or international business, it deals with people. Any product or service offered should keep the following aspects in mind-

• The lifestyle of people and products used by them 

• Special occasions often demand special products, depending on the cultural diversity.

Conclusion –Therefore we can say that Politics, economic growth, technology and culture together form an environment for International Business. A lot of factors are responsible for the smooth functioning of any International business. Owing to the requirements of International Business a new subject has evolved in the modern times which deal with the study of International Business Environment.