International Business Environment

Major factors influencing international business

• Geographic, social, economic, political

• Financial, linguistic, climate

• Cultural, historical

• Economic, political

______ determines what type of crops can be grown and whether or not tourism will thrive.

• Farming methods

• Climate

• Terrain

• Geology

________ determines whether agriculture or mining will be areas of focus.

• Climate

• Terrain

• Economic conditions

What makes international trade via shipping possible?

• Climate

• Access to water

• Political situation

• Terrain

Culture is the accepted behaviors, customs and values of a society. 

• True

• False

Important cultural and social factors influencing international business

• Religious beliefs and traditions

• Wealth, health and economic situation

• Language, religion, education, values, traditions

• Language and traditions

The following political factors can significantly restrict international business

• Type, stability and business policies of government

• Government interventions

• Government stability

• Taxation policies and trade regulations

Country's overall level of economic development reflects its economic condition, which has an impact on the international business environment.

• True

• False

What is the role of international trade in country's economy?

• Allows to satisfy the needs of population and stimulates development of the country

• Helps get more products from abroad

• Helps broaden the range of available goods

A war or political unrest are the signs of

• Political stability which is positive for international trade

• Political instability which has negative influence on international trade

• Economic challenges