INTERNATIONAL BUSINESS

ENVIRONMENT-ECONOMIC AND
TRADE
Economic environment
 Economic environment is the sum total of
several economic factors like….

 Basic economic system

 Growth strategy

 Industry

 Agriculture
 Infrastructure

 Exports and imports

 Population

 Literacy

Based on country,s economic development

,nations are classified into
Developing and developed countries
 A look at the indian economy reveals both
positive and negative features.

 Positive features…….
 Progress in industry
 Progress in agriculture
 Foreign trade
 Control of inflation
 Improved the standard of living of people
 Negative features……

 Many industries facing the threat of closure

 The acheivements doesnot make any changes

to the common man.

 Has huge unemployed population.

Trade
 International trade is the exchange of capital,
goods and services across international
borders

 International trade system has impact on

 Industrialization
 Advanced transportation
 Globalization
 MNC
 International trade is more costly than
domestic trade.

 Capital and labour are more mobile within a

country than across countries

 International trade mostly prefer goods and

services rather than capital and labour.
Risk in international trade.......
 Buyer insolvency

 Non acceptance

 Credit risk

 Regulatory risk

 Political risk

 War & other un controllable events

THANKS