domestic and global business environment
Post on 19-Oct-2014
5.842 views
DESCRIPTION
This presentation deals about the international business environment. The difficulties of both domestic and global environmentTRANSCRIPT
Domestic And Global Business Environment
By R. Paul Godwin
Business Environment“Consists of all factors that have a bearing on
the business”
Factors:PoliticalLegalTechnicalEconomicSocial culturalEtc..
Types of Business Environment
Economic environment.
Non-economic environment.
Economic Environment
Economic Conditions. include gross domestic product, markets for goods
and services , foreign exchange reserve, growth of foreign
trade, etc. Economic Policies. (i) Industrial policy
(ii) Fiscal policy (iii) Monetary policy (iv) Foreign investment policy (v) Export –Import policy (Exim policy)
Industry policy
The Industrial policy of the government covers
all those principles, policies, rules and procedures, which direct and control the industrial enterprises of the country.
Fiscal policy
It includes government policy in respect of public expenditure.
Example: TaxPublic Debt.
Monetary policy
It includes all those activities and interventions
that aim at smooth supply of credit to the business and a boost to trade and industry.
Example: Interest rates.Bank reserves. Etc…
Foreign investment policy This policy aims at regulating the inflow of
foreign investment in various sectors for a firm.
Export–Import policy (Exim policy)
It aims at decreasing the gap between export and import.
The focus now-a-days lies on removing barriers and controls and lowering the custom duties.
Non-Economic EnvironmentSocial Environment.Political Environment.Legal Environment.
Social EnvironmentThe social environment of business includes
social factors like customs, traditions, values, beliefs, poverty, literacy etc.
For example: During festive seasons there is an increase in the demand for new clothes, sweets, fruits, flower, etc.
Political EnvironmentThis includes the political system, the
government policies and attitude towards the business community and the unionism.
Eg: Labour Union.
Legal EnvironmentThis refers to set of laws, regulations, which
influence the business organisations and their operations.
Every business organisation has to obey, and work within the framework of the law.
Eg: Factory act 1948.
Domestic Business EnvironmentThe domestic factors that affects the firm
situated in a domestic country.
Features D.Business environmentBusiness are carried out in home country
only.It depends on domestic culture of the people.In case of monopoly, the firm can achieve
large profit.The legal factor do not affect more on
domestic environment.
Global Business Environment•The Global Business Environment is that the business carried on globaly.It is influenced by the World Trade Organisation, principles and agreements.
Features G.Business Environment
Doing or planning to expend, Business Globally
Each country or market was assumed to be difficult to reach others.
Global business mainly focused to get the Domestic market of a country.
conclusionDomestic Environment is the first and
foremost step that is taken to establish a successful Global environment.Once the domestic Business is successful that will lead to a higher chances of being very successful at the Global Level.The environment should be properly utilized to get Positive results because over Globalisation might lead to the destruction of the Domestic environment.