Globalization connects different world economies and paved the way for international businesses to flourish across boundaries. Coupled with digitalization, it has grown manifold in the past few decades worldwide. It refers to all the cross-border transactions of goods, capital, technology, managerial knowledge, and services that take place between two or more countries. The companies that carry out such cross-border businesses are called multinational companies.
6 factors that affect international business
1. Legal liabilities
Cross-country businesses have to deal with the legal framework of two or more countries. They may differ in terms of age, disability discrimination, wage rates, employment, environment, and others. Hence, it affects the working of the MNCs to abide by all the rules of all the countries. In addition, many international lending agencies could affect legal culture and working policies.
2. Political factors
The different political considerations of the countries involved in the global business either facilitate or hinder the business. The trade agreements entered between the governments of countries are the ones that are the most affected by political stability, foreign trade regulations, change of actions of the new governments, and many more.
In addition, doing business with countries that lack political stability will directly influence the operations of the MNCs.
3. Technological factors
Technology factors are what increase the economic growth and the social change to happen. Hence, they have both positive and negative impacts on the countries due to cross-border businesses. In addition, it could threaten the existence of the local businesses to the level of extinction or increase their level of global standards.
4. Economic factors
Many economic factors that directly affect international business includes among others:
- Fiscal policies
- Inflation rates
- Interest rates
- Income distribution
- Employment level
- Allocation of government budget
- The purchasing power of the customers
- Demand for various products
- Value of the country’s currency
5. Social factors
The social environment and culture, like the peoples’ customs, lifestyles have a direct impact on international business. The social factors, like education, awareness, status, and trends of the people in society, determine the consumers’ behavior for purchasing goods and services.
6. Environmental factors
The external environmental factors have become significant issues for global business in the last few years due to an increase in environmental awareness. The factors like climate change, weather, temperature affects the demand pattern of many goods and services.
More demand moving towards environmentally friendly products and services of different levels in countries is also an essential factor. Many more factors that are significant affect international business, but it is only on the rise every year against all the odds.
Why choose LiveWebTutors for providing economics assignment help?
We have qualified Ph.D.-holding writers offering dissertations, case studies and much more. It can be an economical dissertation or a case study; you can always depend on our scholarly writers providing the best economics assignment help.
- The content provided by us is written from the scratch so that when it is made available to you, you receive a high quality and plagiarism free work.
- Complicated Economics assignments are drafted with the utmost care and attention by our Ph.D. certified economics assignment helps writers. It has to go through extensive research before being implemented.
- Our customer service attends to every client with the same energy and dedication even if it is midnight. Our 24*7 assistance has served many worried students around the globe.
- We provide you with quality writing at a competitive price. We understand all the financial constraint, a student suffers. Therefore, we provide supreme quality Economics assignment help at an affordable cost.
LiveWebTutors team of economics writers process years of experience in providing expert Economics assignment writing assistance to the needy students. So, if you want to take benefit of our extremely amazing services, then place an order and witness a rewarding academic career.
World No. 1 Academic Writing Services 