Question

Nature and importance of international business in changing business environment

Answer 1

Normally, business Environment encompasses the climate’ as well as set of conditions, economic, institutional, social, political in which business operations are conducted. on the whole environment contains the external factors that create opportunities and threats to the business.

Overall, this also includes socio-economic conditions, technology as well as political conditions.

Answer 2

                            International business can be termed as the global trade of services, goods, ideas and investment.

Nature of International Business:

• The focus is on global resources, opportunities and threats.

• The market segmentation is based on the geographic segmentation.

• Potential is more in International markets when compared to domestic markets, and so are the risks.

Importance of International Business:

• Increase in national income Growth in employment

• The higher rate of profitability

• Increase the standard of living

• Improves International Relations.