Question

Define international business environment.how does the home country environment influence foreign business operations of a firm?

Answer 1

International business means the buying and selling of the goods and services across the border. These business activities may be of government or private. A business enterprise who goes for international business has to take a very wide and long view before making any decision, it has to refer to social, political, historical, cultural, geographical, physical, ecological and economic aspects of the another country where it had to business.Today there are thousands of MNCs which operate in many parts of the globe. Such companies should familiarize themselves with the languages, cultures and the business environments of the countries in which they are operating.Companies operating in international markets function in a highly competitive environment and require strategies that differentiate their products and enhance their perceived value, while reducing production costs. Traditionally, many such companies have confined much of their value adding activities to their home countries.