International Business: Environment, Factors, and Impact Report

This report provides a comprehensive overview of international business, exploring the operational aspects of companies in foreign countries and their contributions to global economic growth. The report delves into the international business environment, examining political risks, cultural differences, and exchange rate fluctuations. It highlights key factors influencing international trade, such as exchange rates, competitiveness, and globalization, while also discussing the benefits of international business like low-cost production, foreign exchange earnings, and employment generation. The report further analyzes various factors that affect international business, including reporting requirements, legislative changes, and capital resources, concluding with the importance of innovation and technology in the global market. The report is a valuable resource for students seeking to understand the complexities of international business and the factors that drive it.

International Studies

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
International business:................................................................................................................3
International business environment: ..........................................................................................4
Factors are influencing on international business. .....................................................................7
CONCLUSION ...........................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
International business is process which refers to most of organisation operating business
in another countries as well as their products and services serves globally. It includes various
factors such as exchange rate, demand, supply, market condition, political and economy
(Aribawa, 2016). The report is about international business in order to many organisation
operates business as well as greater contribution in economy for growth & development. The
paper consist is various factors in order to influencing in international trade and business as well
as analysis all this factor effectively.
MAIN BODY
International business:
International trade refers to production of goods & services in across the countries. It includes
most of organisation trade the goods and services from other countries which are promoting
globalisation in order to integrated global economy. It considered as developing great
opportunities for international trade as well as economy. Internation business is greater
contribution towards global economy due to organisation easily trading from other countries. It
includes globalisation in the context of market are helpful to reducing trade barriers as well as
changing customers taste and preferences (Boddewyn, 2016). It also said that exchange of
money, goods, services as well as transfer other resources such as patents, copyright, brand
trademarks and many other. There are ample numbers multinational companies are engaging in
international trade such as McDonald, Microsoft and Starbucks. It involves various electronic
organisation and producers in order to operating their business in another countries such as
Samsung, LG, Sony and many others.
International business environment:
International business environment is important concept in order to various aspects are involved
in order to regulated the business in another countries. There are various aspect such as political
risk, cultural differences, exchange risk, legal and taxation issue. There are many multinational
organisation run their business in another countries and international business environment
provides surrounding in order to organisation effectively run their business. It is important for
economy growth and development in order to many countries as world's strongest economies
like Germany, Japan, Switzerland and many other. It is regulated international trade in this

countries such as Economic co-operation and development (OCED). It plays vital role in order to
greater contribution in growth & development of an economy. It includes international business
& environment is wider and broader scope in order to providing various opportunities for
business as well as impact on globalisation. It incudes business sale and buying products and
services at global level in order to serves the best products and services for customers. It includes
most of international companies operating and sale products at globally which refers to
enhancing productivity and profitability of company. Many organisation analysing international
business environment and accordingly formulating new strategies in order to effectively and
efficiently operating international trade (Cantwell, 2017). There are various international
business faces various challenges as well as factors which are impact on businesses such as
foreign exchange markets, foreign legal systems, cultural differences, different rate of inflation,
market condition and situation. There are ample numbers of advantages of international business
as well as trading in another countries in order to exchanges the ideas, information, service and
capital in across countries. There are ample numbers of benefits for international business in
order to smoothly conducting business activity in another countries so which are discussed
below.
Low-cost production-: Most of organisation run their business in another countries so
greater benefit such as low cost production in order to labour cost low and effective supply
rather than domestic productions. For example, there are various countries like China,
Philippines and Mexico has providing opportunities for low cost production.
Earning of foreign exchange-: It includes most of organisation establishing business as well as
trading in another countries because earning foreign exchange in order to import of capital
goods, technology, petroleum, products and fertilizers.
Efficient use of resources-: It is essential for economy and countries in order to effective
and efficient use of resources in proper manner. It considered as many countries are experts and
specialized because best possible use of resources (Cherunilam, 2016). It includes production of
products and services in effective manner in order to reducing wastages as well as provided
protection of environment. Most of organisation produces products and services in proper
manner in order to increasing production capacity as well as large production. It is greater
beneficial for economies and reducing the cost of productions. For example, Japan is produces

ample numbers of electronic products an gadgets effectively and efficiently and servers in many
countries.
Generates employment-: It includes international business is greater contribution for
generating employment opportunities in order to enhancing production as well as more demand
of labour so it is directly impact on employment. It includes most of MNC are set up in another
countries so increasing demand of more employees in order to effectively performing business
functions and activity.
Enhanced skill level of labour-: It considered as organisation conducting international
business so they required skill, able and capable labour in order to effectively performing
business activity (Cuervo-Cazurra, 2016). It includes most of organisation providing training
programmes due to enhancing their skill and ability which result as providing best services and
product for customers. There are various example which are specialized in different area in order
to serve the market such as Brazil specializes in coffee, Kenya in tea, Japan in auto mobiles &
electronic and many others.
Support to domestic industry-: It includes most of multinational companies providing
opportunities for domestic companies in context of technology, management, expertise, market
intelligence, product developments and many others. For example, Japanese organisation like
Honda, Yamaha and Suzuki.
Brand image-: It includes organisation serves the international market so according
developing their brand image at market place. It considered as serves the best products and
services for customers in order to developing brand image in the mind of customers.
Disposal of surplus goods-: It is process which refers to many products and services are demand
in international market rather than domestic markets. It includes most of organisation main aim
and purpose in order to enter the markets of developing countries. It is greater advantages in
order to dispose of surplus goods which refers to unable to sell products in domestic market. For
example like Toyota, Honda and Coca-cola (Fabuš, 2017).
Longer product lifespan-: It includes product life cycle are longer period of time in
order to decreases demand of product at marketplace. It considered as many organisation sale
product at international market in order to increasing life of an existing product as well as
emerging which refers to effectively buying products.

Increased revenues-: It includes ample numbers of organisation serves the various
product and services in order to various customers which are helpful to increasing profitability
and productivity of company. In addition to this, it includes organisation successfully operating
business in another countries so enhancing revenue and growth (Ivanovich, 2020). It includes
international business which refers to more profitable rather than domestic business.
Therefore, it includes various advantages and benefits for international business in order
to effectively serves the best product and services for customers as well as greater contribution
towards the economy.
There are various factors which are influencing on international trade business as well as
impact on growth & development. It includes ample numbers of factors such as political,
economic, cultural and many others. All this factors majorly impact of growth and development
of international business. It involves exchange rates, competitiveness, globalization, tariffs and
trade barriers, transportation costs, language barrier and various other which are affect on
decision making in business. It considered as political issues such as policies of government in
order to they are regulated different rules, regulation which are impact on international business.
It refers to politically stability in order to government formulated new policies in order to
developing international trade with minimum restriction. On the other hand political instability,
it considered as government created too many barriers and restriction in order to affect the
international business. International trade are depends on two factors such economy of country
and political situation in order to developing countries which refers to rapid growth and
development if business (Kolk, 2016). There are ample numbers of factors which are affecting
international business so mentioned below.
Factors are influencing on international business.
Exchange rate-: It is process which refers to price of one currency are different in
another countries. It is rates which are fluctuate on the basis of demand of currency in order to
high demand of country currency so price will increasing and vice-versa. It involves products
and services are sell at cheaper price in another country so it depends on fluctuate of price and
exchange rate majorly impact on international business.
Competitiveness-: This factor plays vital role in order to most of companies sale products
and services so they face cut throat competition at marketplace. International business majorly
influencing this factor because sale products in another nations so various factors are affect them

such as efficiency, cost of employment, level of government policy, customer demand of
products and services. It is essential factor which refers to most of organisation formulating new
policy and strategies in order to developing goodwill in the market.
Globalisation-: It is important factor which are affect the international business in order
to national economies are integrated with different business and market. It considered as more
business firm sale their product and services for globally with the help of advanced
communication, technologies, logistic, increasing capital flow and reduction of trade barrier by
government (Lu, 2017). It includes organisation using advanced technology and innovation in
products and services which refers to globally serves the product and services.
Reporting requirements-: It includes organisation has fulfil all the requirement in order
to greater transparency regarding investing, tackling money laundering, tax evasion and other
majors. It includes organisation operating business in another countries so fulfil all the legal
requirements in order to smoothly operating business in another countries. It is process which
refers to tax evasion and many other factor are impact on business.
Legislative changes-: This factors plays vital role in order to legislative changes such as
boost economy growth & development in order to attractive investment. For example, UK
defined rules in order to apply post-Brexit so political issues in order to rules, regulation which
are necessary for interactional business are fulfilled.
Labour laws-: It includes government developing various laws and regulation in order to
organisation are adhered to follow due to smoothly conducting business activity. There are
majorly impact on political pressure because those organisation globally operate business in
order to hiring skill and capable employees.
Penalties for non compliances-: This factor are impact on penalties are imposed by the
authorities in order to organisation are not followed such rules and conditions (Prajogo, 2016). It
includes most of organisation breaches rules and regulation so biggest threat on company
reputation so essential for organisation to follow the rules and regulation in order to operating
business globally.
Accounting & tax requirement-: It includes most of organisation operating business in
another countries in order to various local authorities are prescribe own rules and regulation so
companies fulfil the tax requirement due to effectively operating business globally.

Capital resources-: It includes capital and fund are required to any organisation in order
to run their business effectively and efficiently. It considered as organisation operating business
globally so require huge amount of fund in order to run and sustain business in another countries.
It includes various resources such as tangible goods, factories, machines and many others.
Innovation and technology-: In present context, it includes organisation using various
innovative product and services in order to serves the best product and services for customers. It
includes organisation using advanced techniques due to smoothly run the business operations
which are helpful to achieving organisation goal and objectives (World Bank, 2016). It is
essential to developing innovative products and services in order to enhancing profitability and
productivity of company.
Hence, it includes various factors which are influencing in international business as well
as growth & development of economy. It includes effectively analysis this factor in order to
smoothly run the business operations.
CONCLUSION
From the above report, it has been concluded that it includes international business is
wider and broader concept in order to sale product and services across the countries as well as
smoothly run the business operations. It includes international business environment which
refers to involving various factors in order to providing various product and services which
result as enhancing profitability and productivity of an organisation. Further, it includes various
benefits for international business in order to smoothly run the business activity as well as
considered ample numbers of factors which are influencing in international trade.

REFERENCES
The Books and Journal
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