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SAASS International Business Environment Research Paper

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International Business Environment


An international business environment refers to a platform in which multinational organizations
run their businesses. We can also say that this is a platform where goods and services are traded
at a worldwide market level. The modern market has enabled firms to execute their activities on
a global level. Here, all the countries cooperate and agree to trade in a similar platform that is
similar and convenient for all the approved countries. One primary aim is to converse with the
complex factors that may hinder a business organization and enlarge it internationally.
1.0. Task one
1.1 Business techniques used to analyze the international business environment
1.1 2. Political environment in international business
This refers to the involvement of the government in the trading activities of the countries. The
political activities can be favorable or unfavorable towards global businesses. It is hard to trade
with a country that has set barriers. A barrier is anything that can hinder business activities in a
particular country. There are a lot of uncertainties when trading with another country. It is
therefore advisable to check if the other government has set barriers. An example of an obstacle
is when a country imposes tariffs, taxes on imports that help make domestic products more
competitive and produce quotas; these help limit the number of imported products. This will
lower the general output hence reducing the public goods to be sold to other countries.
1.1 3 Economic environments in international business
These are factors that affect the country’s potential to foster global trade. Some of these factors
include unemployment rates, the purchasing level of the client, inflation rates, labor costs income

distribution of the countries trading. When one carries trade with a country with stable income
distribution, the business is likely to thrive.
1.1 4 Technological environments in international business
This refers to the countries know- how machinery levels of the government in mention. As we all
know, technological advancement is essential in any industry. For a business to thrive, the level
of technology has t be updated, the materials and machines used should be of very high quality.
The countries in the industry should also be very innovative with technology invention
techniques. Countries should employ business techniques that employ both complicated
technology and soft technology. They should also consider using both labor-intensive and
capital-intensive technology. They should base more on the highly advanced type of technology,
capital-intensive labor. Countries that practice up-to-date technological advances increase their
productivity and experience increased sales. This will also boost innovation and set the countries
at a high competitive level.
1.1. 5 Cultural environments in the business.
Culture refers to the beliefs and values of a particular country concerning business activities.
Cultural concerns include language, religion, education, attitudes and values, customs and
taboos, and family and business norms. A Marketer who plans and wishes to market their
products in a different country must take their time and analyze the cultural background of the
country they intend to trade with. This will enable them to have an idea of whom they’re dealing
with. This analysis will allow their business to thrive as they would have taken time to know the
type of products they consume, the language they speak; they also need to dig deeper and

understand their customs and taboos. When they pay attention to the critical cultural dimensions,
this will make the global marketers thrive in their respective businesses (Oyemomi et al, 2019)
1.2 The impact of Globalization and international trade on national economics
The most visible effects of globalization are the ones that directly impact the economy. Due to
the increased rate of globalization, there have been increased levels of communication and
transportation services. As a result, there have been increased chances of investment in the
economic world (Yirmibeşoğlu, 2017).
Globalization has benefited international trade and boosted the national economies. It has
increased financial exchanges between companies and changed the paradigm of work.
Globalization also has paved the way for international goods and opened up their markets. This
has led to increased trade activities within the countries and also increased flow of people,
finances, and ideas at the international level(Yirmibeşoğlu, 2017).
Globalization has led to a quick rise in the transfer of information between trading countries. It
has also elim…

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