Question

Explain various economic & financial environment which influence international business with examples

Answer 1

Answer:

International business decisions to be taken by executive managers of multinational firms are becoming more challenging due to uncertainties in business environment which is due to fast changing and unpredictable domestic, foreign, and global environment for long term sustainability. Even though firms are cautious and take precautions while taking decisions on international investment for production and marketing, their sustainability for a long time in a given business is shaking due to continuous changes in domestic, foreign, and global business environment. This is mainly due to variations in economic conditions, political scenarios, socio-cultural environment, technological breakthroughs, legal aspects and human behavioural effects on opportunities and challenges on the international business performance of multinational firms. In this paper, we have studied in brief, the various domestic, foreign, and global environmental issues which affects the multinational firm’s business decisions related to international investments and marketing. The paper also discusses the impact of the domestic environment, foreign environment, and global environment on economical, political, technological, legal, and cultural issues on investment and expansion decisions of multinational corporations in general.

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Answer 2

The various economic & financial environment which influence international business with examples

Explanation:

• The various international business environments of today are the cross border events and are defined by the way the organizations and on the other hand, this environment equipped with the other big environments that operate outside the country as a part of the operation and the business carrying capacity of the country.  

• The economic and the financial environments are due to the changes that take place in the changes of the currency units, exchange rate fluctuations and the monetary system and the regulatory system also. An example of the nature of the economy and stages of development and distribution of the incomes.  

• All these factors are being regulated by the mico and the macro factors and in less developed countries price inflation and high and rising demand and have a great impact on the business and the policies like the government import and export policy have a  considerable amount of influence on the economic aspects of the country.  

• Other aspects like factors of production and a free-market economy as the (EEC) European market economy has a centrally controlled pattern of the distribution of the trade flows and hence the economic environment is dominated by all these factors.

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• https://brainly.in/question/12982558 answered by Palak1056.