Question

Do you think that study of international business environment is relevant for the managers. Give your arguments and explain the economic and financial environment of international business.

Answer 1

Thank you for asking the question.

First of all its all depends on you that in which sector your are working and how your product is affected by international business environment.
But yes off-course having the knowledge of international business will be beneficial whether you are on a local firm or at global level.
Everything is inter-connected so may be the changes at international level may leave  an impact on a local firm too.
I hope this will help you.

Answer 2

It is mandatory for your business managers to have an understanding of the international business environment only if you plan to expand your business outside the country. In such a situation, it is ideal for the managers to have an in-depth understanding of environmental and cultural differences. They must also monitor the technological, sociocultural, economic, legal and political environments periodically.

When doing an international business, you must continually assess the economic risks associated with it. One major aspect to be kept in mind is that inflation can go beyond control at any point of time. On the financial front, you must be prepared for the fluctuating exchange rates. A drop in exchange rate can mean lesser revenues for the same amount of sales.