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Forces in International Business

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Summary

International businesses are those enterprises that are found to operate across the borders. This means that, they buy or synthesize products from the domestic country before marketing or selling them in the other countries. On their line of operation, they face the international business environments which are the forces that can create opportunities or threats to the business. These business environments are found to be less influenced by the business as they are not domestically created. They include economic, natural, social–cultural factors, technological democratic, international and lastly market. These factors have both positive and negative effect to the business and they mainly depend on the policies created in each country to control the market forces.

In most cases, the environments are currently changing with the people and organizational structures, hence every organization must be aware of this so as not to frustrate the employees or even loose the customers. The seven international business environments have been matched to the performance and operation of coca cola in the international market where we observed that, on many occasions, they can create opportunity to the company but on other times create threats to the business. This means that, every organization has a line of duty in identifying the opportunities and threats from these environmental factors in the global market. The companies have now been tamed by the government of the countries they are operating in hence increasing opportunities for the company. This is form of an ethical issue from the international business environment.

Therefore, it lies substantially within the capacity of the business to optimize on the variables represented by the market within which it operates. One way is to observe the socially accepted values of a society and also social responsibility, a move that is turning up to be a requirement for success in an international environment.

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