7 Key Factors Affecting International Business

International business includes a variety of factors that influence the strategies, operations and decision making of a business.

image credit: Pexels image credit: Pexels

Economic Conditions

[{"selector":"#anim-f3158741-6932-4961-aea9-7496922bfab2","keyframes":{"opacity":[0,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] [{"selector":"#anim-01f64d3c-5b90-43bc-af8a-3bb0d73fde82","keyframes":{"transform":["scale(0.3333333333333333)","scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] [{"selector":"#anim-98dbeda5-7768-41af-afcd-765ec1ca190d","keyframes":{"transform":["translate3d(99.75903%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-1e11239e-d2d7-4c5b-9ce6-25fa3092905f","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-84181efe-24f5-4c8c-b6c0-71da785bc1c0","keyframes":{"transform":["scale(0.15)","scale(1)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"forwards"}] image credit: Pexels image credit: Pexels

These factors include political instability, government policies, regulations, legal systems, rule of law, and trade agreements.

[{"selector":"#anim-d7315ec4-bb5c-40d8-b280-b205234b98b2","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-1f6cb13c-2b1a-42ea-b0df-08189fea21a2","keyframes":{"transform":["translate3d(99.75903%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-c98a80e9-c922-486e-b7b9-4ed68a52eae9","keyframes":{"opacity":[1,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] [{"selector":"#anim-9fc164ef-ea60-43ed-a578-b92491e52566","keyframes":{"transform":["scale(3)","scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] image credit: Pexels image credit: Pexels

Technological factors include communication, transportation, logistics, and information exchange.

[{"selector":"#anim-6488ab55-bdb8-4f78-80d5-641fead6d274","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-69c9ac4d-53f1-484a-849a-dd62c645e76d","keyframes":{"transform":["translate3d(99.75903%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-360460f3-7d99-4432-b0d1-b5ae6aacfdd7","keyframes":{"opacity":[0,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] [{"selector":"#anim-7f886deb-f1d9-44e6-8fdd-eec0dd29ed31","keyframes":{"transform":["scale(0.3333333333333333)","scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] image credit: Pexels image credit: Pexels

Competition from local and international rivals affects pricing, product differentiation, and market positioning strategies for businesses.

[{"selector":"#anim-58f849a3-4a0a-4b0c-87a6-91edae11a927","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-0f863547-c4c0-4672-b0e9-0eb2037961f0","keyframes":{"transform":["translate3d(0px, -420.42646%, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-50a03103-2f28-487f-b989-9995c7b7eedf","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-8181093c-b356-4963-8a68-b3bc7795212a","keyframes":{"transform":["translate3d(0px, 132.98299%, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] image credit: Pexels image credit: Pexels

Legal factors include labor laws, intellectual property rights, contract enforcement, taxation policies, and regulatory compliance.

[{"selector":"#anim-1811f119-4338-4942-8903-1f0f34e6c333","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-08ced261-ec1f-4399-9450-e333ada27e80","keyframes":{"transform":["translate3d(0px, 419.41631%, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-58234f6f-5a73-4f83-98a8-cd50cca7c5d9","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-76c9e5f2-7bbc-4a5a-8b66-4ca661a38f5e","keyframes":{"transform":["translate3d(0px, -296.94694%, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] image credit: Pexels image credit: Pexels

These strategies includes direct and indirect exporting, Joint Ventures, Licensing and Franchising.

[{"selector":"#anim-44774b45-bd9f-45ec-a87e-b345521e1493","keyframes":{"opacity":[1,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] [{"selector":"#anim-cc507d11-280b-4fe7-8e37-1a1041602398","keyframes":{"transform":["scale(3)","scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] [{"selector":"#anim-1a400df1-7cd1-46fb-90d8-0be4fd81bea9","keyframes":{"opacity":[0,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] [{"selector":"#anim-f2a73c74-2684-426a-8691-eb9d8c672d70","keyframes":{"transform":["scale(0.3333333333333333)","scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] image credit: Pexels image credit: Pexels

It involves language, beliefs, values, customs, social norms, and behavior of a particular society or culture.

[{"selector":"#anim-59737a12-7635-499a-a262-91e054eb9db7","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-d5247c26-dfa4-4fc9-92f7-16e7dc529a5b","keyframes":{"transform":["translate3d(-99.51807%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-83e07ce0-ac3c-45e7-84ce-8974c835bb3b","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-a9a0b7ba-76ec-41e1-997c-bc4452c2ec67","keyframes":{"transform":["translate3d(99.75903%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] image credit: Pexels image credit: Pexels Learn more

International business includes a variety of factors that influence the strategies, operations and decision making of a business.

Economic Conditions

Economic factors such as GDP growth, inflation rates, incentives, interest rates, exchange rates, and economic stability impact international business.

These factors include political instability, government policies, regulations, legal systems, rule of law, and trade agreements.

Political Environment

Technological factors include communication, transportation, logistics, and information exchange.

Technological Advancements

Competition from local and international rivals affects pricing, product differentiation, and market positioning strategies for businesses.

Competitive Environment

Legal factors include labor laws, intellectual property rights, contract enforcement, taxation policies, and regulatory compliance.

Legal and Regulatory Factors

These strategies includes direct and indirect exporting, Joint Ventures, Licensing and Franchising.

Market Entry Strategies

It involves language, beliefs, values, customs, social norms, and behavior of a particular society or culture.

Cultural Factors