economic environment.pptx

7/22/2019 ECONOMIC ENVIRONMENT.pptx

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ECONOMIC ENVIRONMENT


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ECONOMIC SYSTEM

ECONOMIC SYSTEM IS THE SYSTEM OFPRODUCTION, DISTRIBUTION ANDCONSUMPTION OF GOODS AND SERVICES OF ANECONOMY

IT ADDRESSED THE PROBLEM OF ECONOMY LIKESCARCITY THROUGH ALLOCATION OF FINITEPRODUCTIVE RESOURCES

ANOTHER WAY OF CLASSIFYING COUNTRIES ISTHEIR ECONMIC SYSTEM

KEEPING THIS IN MIND COUNTRIES ARECLASSIEFIED AS MARKET ECONOMIES,COMMANDECONOMIES AND MIXED ECONOMIES.


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TYPES OF ECONOMIC SYSTEM

1. PLANNED ECONOMY/COMMAND ECONOMY

2. MARKET BASED ECONOMY/ MARKET

ALLOCATION

3. MIXED ECONOMIC SYSTEM/ MIXED

ALLOCATION


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1. PLANNED ECONOMIC

SYSTEM/COMMAND ALLOCATION

ALSO KNOW AS CENTRALLY PLANNED ECONOMY STATE HAS BOARD POWERS TO SERVE THE PUBLIC

INTREST

THESE INCLUDE DECIDING WHICH PRODUCT TO

MAKE AND HOW TO MAKE CONSUMERS ARE FREE TO CHOOSE THE

PRODUCT FROM AVAILIABLE PRODUCT, BUTDECISIONS ABOU WAT TO PRODUCE IS MADE BY

THE STATE PLANNERS. ADVERTISING,PROMOTION DISTRIBUTION IS

HANDLED BY THE GOVT. TO CUT EXPLOITATIONBY INTERMEDIARIES.


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2. MARKET BASED ECONOMY/

MARKET ALLOCATION

IT IS THE SYSTEM WHICH RELIES ON

CONSUMER TO ALLOCATE RESOURCE.

CONSUMER MAKE DECISION WHAT WILL BE

PRODUCED BY WHOM

ROLE OF STATE IN A MARKET ECONOMY IS TO

PROMOTE COMPETITION AND ENSURE

CONSUMERS PROTECTION


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3.MIXED ECONOMIC SYSTEM/ MIXED

ALLOCATION

IT REPRESENTS A MIXTURE OF STATE

CONTROL ON ONE HAND AND THE ECONOMIC

FREEDOM OF ENTREPRENEURS AND

CONSUMERS ON OTHER IS THE NATURAL

OUTCOME.

GNP PER CAPITA PROVIDES A VERY USEFUL

WAY OF GROUPING THESE COUNTRIES.


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IMPACT OF ECONOMIC ENVIRONMENT

ON INTERNATIONAL BUSINESS

1. THE CURRENT STATE OF GLOBAL ECONOMY AND WAT ITIS LIKELY TO BE IN THE NEAR FUTURE.

2. DEMAND DYNAMICS FOR A PARTICULAR PRODUCT IN AGIVEN MARKET.

3. SUPPLY SITUATION OF A PARTICULAR PRODUCT ORSERVICE AT A PARTICULAR TIME.

4. FACTORS AFFECTING PRICING OF A PRODUCT ANDSERVICES

5. COMPETITION IN A MARKET

6. SHORT TERM AND LONG TERM PROFITABILITY7. DEPRESSION OF ECONOMIES THAT RESULT IN RISE OR

DECLINE OR STABILITY IN ECONOMIC GROWTH RATES ATGLOBAL AND NATIONAL LEVEL


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AVAILABILITY OF FDI AND FII

REGULATION AND MANAGEMENT OF

NATIONAL ECONOMIES

WORLD FOOD PRODUCTION LEVELS AT A

PARTICULAR TIME

RATE OF INFLATION IN AN ECONOMY

EXTENT OF LPG


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CULTURAL ENVIRONMENT


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INTRODUCTION

IT IS ONE OF THE CRITICAL COMPONENT OF IB

AND DIFFICULT TO UNDERSTAND.

BECAUSE IT IS HAS DIFFERENT SHARED VALUES ,

BELIEF WHAT IS RIGHT FOR ONE GROUP.

NATION CULTURE IS BODY OF GENERAL BELIEF

AND VALUES THT IS SHARED BY NATION .

WHICH INCLUDES HISTORY,LANGUAGE,RELIGIONGEOGRAPHIC LOCATION, GOVERNMENT AND

EDUCATION.


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CULTURE IS SYSTEM OF VALUE AND NORMS THAT

ARE SHARED AMONG A GROUP OF PEOPLE AND

THAT WHEN TAKEN TOGETHER CONSTITUTE A

DESIGN FOR LIVING.

VALUE MEANS ABSTRACT IDEA ABOUT WHAT A

GROUP BELIEVES TO BE GOOD, RIGHT AND

DESIRABLE. NORMS MEANS THE SOCIAL RULES AND

GUIDELINES THAT PRESCRIBES APPROPRIATE

BEHAVIOUR IN PARTICULAR SITUATIONS.

SOCIETY MEANS USED TO REFER TO A GROUP OFPEOPLE WHO SHARE A COMMON SET OF VALUE

AND NORMS.


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COMPONENTS OF CULTURE

1. LANGUAGE

2. ATTITUDE AND VALUES

3. SOCIAL ORGANISATION4. EDUCATION

5. TECHNOLOGY

6. POLTICAL SYSTEM7. LEAGAL SYSTEM


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CHARACTERISTICS OF CULTURE

CULTURE IS PRESCRIPTIVE

CULTURE IS SOCIALLY SHARED

CULTURE FACILITATES COMMUNICATION CULTURE IS LEARNED

CULTURE IS SUBJECTIVE


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IMPACT OF CULTURE ON

INTERNATIONAL BUSINESS

CULTURE DETERMIES GOODS AND SERVICES

CULTURE DETERMINES ATTITUDE TO WORK

CULTURE AND GLOBAL BUSINESSS CULTURE AND COMPETITIVE ADVANTAGE

CULTURE STRATEGY.


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INTRODUCTION

ENVIRONMENT IN WHICH THE FIRM OPERATESWILL HAVE A SIGNIFICANT IMPACT ON ACOMPANYS INTERNATIONAL MARKETINGACTIVITIES.

GREATER THE LEVEL OF INVOLVEMENT IN AFOREIGN MARKETS, THE GREATER THE NEED TOMONITOR THE POLITICAL CLIMATE OF THECOUNTRIES BUSINESS

CHANGES IN GOVT. RESULT IN CHANGES INPOLICY AND ATTITUDE TOWARDS FOREIGNBUSINESS.


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POLITICAL SYSTEM IT IS A SYSTEM OF POLITICS AND GOVERNMENT

IT IS USUALLY COMPERED TO THE LAW SYSTEM,ECONOMIC SYSTEM, CULTURAL SYSTEM ANDSOCIAL SYSTEM

THE SYSTEM OF GOVT. IN A NATION HAS IMPACTON BUSSINESS

TYPE AND STRUCTURE OF GOVT. PREVIALING IN ACOUNTRY DECIDES,PROMOTES,ENCOURAGES,DIRECTS,CONTROLS

THE BUSSINESS OF THAT COUNTRY A POLITICAL SYSTEM THAT IS

STABLE,HONEST,EFFICIENT AND DYNAMIC WHICHENSURES POLITICAL PARTICIPATION TO THE

PEOPLE AND SECURITY TO THE CITIZENS


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CLASSIFICATION OF POLITICAL SYSTEM

1. PARLIAMENTARY GOVT.

2. ABSOLUTIST SYSTEM

3. TWO PARTY SYSTEM4. MULTI PARTY SYSTEM

5. SINGLE PARTY

6. DOMINATED ONE PARTY


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TYPES OF POLITICAL RISK

1. GENERAL INSTABILITY RISK

2. OPERATION LIST

3. OWNERSHIP RISK4. TRANSFER RISK


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IMPACT OF POLITICAL ENVIRONMENT

ON INTERNATIONAL BUSSINESS

1. POLITICAL IDEOLOGY OF GOVT.

2. POLITICAL STABILITY IN A COUNTRY

3. RELATIONS OF GOVT. WITH OTHERCOUNTRIES

4. POLICIES TOWARDS INTERNATIONAL

BUSSINESS/MNCS

5. GOVT. CONTROL AND RESTRICTIONS

6. TREATEMENT OF FOREIGN INVESTERS


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LEGAL ENVIRONMENT


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INTRODUCTION

THE COUNTRYS LEGAL SYSTEM IS THE MEANS AND

METHOD THAT IT USES TO REGULATES BUSSINESSPRATICES,DEFINE HOW COMPANIES CONDUCTSBUSSINESS TRANSATIONS .

THE LEGAL ENVIRONMENT REGULATES THEOPERATION OF FIRM IN INTERNATIONAL MARKETS

IN IB ,DISPUTES ARE COMMON ,TO RESOLVEDIFFERENCES BETWEEN COUNTRIES ,ALL THE MEMBERNATIONS OF THE WTO HAVE ESHTABLISHED A DISPUTE

SETTLEMENT BODY. IT IS A FINAL AUTHORITY AND PASSES RULING AND

FRAME REGULATION ON DISPUTE BETWEEN THECOUNTRIES.


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INTERNATIONAL MARKETINGIS

AFFECTED BY THREE BODIES OF LAW

1. INTERNATIONAL LAWS

2. HOME COUNTRY LAWS

3. HOST COUNTRY LAWS


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KINDS OF LEGAL SYSTEM

1. CODE LAW

2. COMMON LAW

3. THEOCRATIC LAW


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ISSUES IN LEGAL ENVIRONMENT

1. BRIBERY

2. BRANCH VS SUBSIDIARY

3. COUNTERFEITING

4. STRATEGIC CONCERNS

PRODUCT SAFETY AND LIABILITY

MARKETPLACE BEHAVIOUR

PRODUCT ORIGIN

LEGAL JURIDICTION

ARBITRATION

5. GRAY/GREY MARKET

IMPACT OF LEGAL ENVIRONMENT ON


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IMPACT OF LEGAL ENVIRONMENT ON

INTERNATIONAL MARKETING.

1. DEREGULATION

2. GLOBALISATION

3. CONCERN FOR NATURAL ENVIRONMENT

4. INTELLECTUAL PROPERTY5. PRODUCT LIABILITY AND SAFETY

6. COMPETITION AMONG BUSINESS

7. BRIBES AND CORRUPT PRACTICES

8. ADVERTISING AND SALES PROMOTION

9. CONTRACTS

economic environment.pptx

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