UNIVERSITY OF THE SOUTHERN CARIBBEAN

MARACAS ROYAL ROAD, MARACAS, ST.JOSEPH.

Assignment 2

An Assignment
Presented in Partial Fulfilment
of The Requirements for the Course
International Environment of Business

Instructor:Odell Juenville

By

Abyah Thorne

Sunday 9th October, 2022

Approval……………………….
 INTRODUCTION

An organization needs both individual and environmental components to be successful. It is

hard to perform in the business environment if one of these essential, success-related

components is missing. When they pertain to an organization, environmental impacts can be

split into two categories: the external environment and the internal environment. The external

environment, which is outside of the company's control, has a subtle detrimental effect on the

business. On the other hand, the internal environment has a direct effect on the business.

These internal variables are under the company's control, so they can be modified or updated

to meet its needs. In the modern world, businesses work in a highly dynamic environment

that is influenced by a range of internal and external factors.

What is an External Environment?

Definition: An external environment is a group of factors or conditions that are outside the

organization but affect it in some extent. In business, this term commonly applies to elements

related to out of control dimensions such as society, economy, regulations and political

system. The importance of the external environment in international business as a tool for

understanding a firm's surroundings, particularly in foreign markets, cannot be overstated.

The decisions made for the company's external environment are heavily influenced by these

political, economic, sociocultural, technological, environmental, and legal aspects. It

facilitates corporate growth and opens up marketing chances, which provides clarity for

simpler decision-making. (2015) Mara-Soledad Castao

Political factors- When thinking about decision-making within an organization, these

elements are given tremendous consideration, great detail, and a lot of time. Numerous legal

factors can affect a company's decision because it is required that all firms follow by the laws

of the nation. I believe that the political component can provide a sizable danger and cause
the organization to suffer a sizable loss. Politics and political concerns can greatly influence

how an organization or business changes. An economy's political climate influences its

economic conditions, which in turn affects how well a firm performs.

For example: An illustration would be a change in tax rates. Taxes could alter, meaning that

for some companies, the government might raise them in line with their achievements and

sales, while for others, they might be cut to make up for a lack of economic growth and allow

for expansion or possibly inflation. Import Tariffs are an additional example: A charge is

added to each item as it arrives in Trinidad and includes insurance, freight, and duty.

As indicated in the article, trade restrictions include tariffs and non-tariffs, which U.S.

businesses encounter while exporting to Trinidad. Information is occasionally not sufficiently

disseminated during the customs process, which calls for several administrative entities.

Despite the fact that the majority of goods can be imported without restriction, some product

categories on a "negative list" call for import permits and may even incur additional fees.

Economic factors- These are influences rather than just factors that, depending on the

situation, could have a good or bad effect on the business. Examples include inflation,

taxation, business cycles, exchange rates, and taxes. Maintaining stable prices, reducing

unemployment, and fostering national economic growth are the key goals of the government.

Sociocultural Factors: These are sociocultural factors that affect consumer behavior and

other business ventures over the long term. Among these are things like language, culture,

religion, level of education, consumer preferences, and how people in society see things that

are imported. These six straightforward factors can have a significant impact on a company if

they are not properly identified and deconstructed. The corporation must use this knowledge

to guide its decisions in addition to understanding these components. For instance, the

majority of restaurants in Trinidad recently started selling Halal food as a way to demonstrate
that the Muslim population was taken into account in their economic operations. This

increases the market for the several companies that sell chicken items, including Burger King

and KFC, both of which are recognized fast food locations.

technological Factors- This element helps create new, better procedures and tools that the

company or organization may use. New technologies offer countless opportunities that could

benefit businesses not just in Trinidad and Tobago but around the world. Today, technology

is the most common tool utilized on a daily basis. For instance, technology is altering how

manufacturing is done. During the current economic crisis, businesses encountered numerous

problems, including a shortage of clients, which led to a sharp increase in food prices.

Technology has played a significant role in the food industry, as clients can now place online

orders without visiting any business locations and receive door-to-door delivery services due

to quarantine restrictions that forced businesses to close. The drawback is that many people

would lose their jobs as a result of technology's constant use to supply services with a single

click environment.

Environmental Factor-Pollution, climate change, and the availability of non-renewable

resources are some of these environmental issues that have an impact on the physical

environment. Today's society is significantly impacted by these issues. The majority of

businesses worldwide are uninterested in how their operations may influence many of these

environmental problems. For example, In Trinidad and Tobago, for instance, styro foam was

outlawed in 2020, which effectively prohibited its importation into the nation. This move was

made in an effort to promote environmentally friendly packaging. On the other hand, this kind

of environmentally packaging is a plus since it is safe and healthy for individuals and communities

throughout its lifespan, it is made of healthy materials, transported, produced and recycled using

renewable energy.
Legal Factors- In order for items to enter the country, commodities must first pass through

customs for clearance. Additionally, some items are prohibited from importation; for

example, camouflage will be seized at customs.

In conclusion i think that these elements are crucially vital when decisions are being made

within an organization. These six variables are the most crucial to look at while monitoring

business activities and ensuring success within a firm. Despite the fact that a company or

organization cannot control the factors mentioned and how it will affect them it, they can

nevertheless act and allow themselves to be impacted by the result, whether it is for the better

or worse.

REFERENCES

(n.d.). Trinidad and tobago - market overview. International Trade Administration |

Trade.gov. Retrieved October 3, 2022, from https://www.trade.gov/country-
commercial-guides/trinidad-and-tobago-market-overview

(n.d.). Trinidad and tobago - market overview. International Trade Administration |

Trade.gov. Retrieved October 3, 2022, from https://www.trade.gov/country-
commercial-guides/trinidad-and-tobago-market-overview

Doodnath, A. (2019, December 26). 10 of T&T's biggest environmental issues in 2019: Loop
Trinidad & tobago. Loop News. Retrieved October 9, 2022, from
https://tt.loopnews.com/content/10-tts-biggest-environmental-issues-2019

T&T Law on camouflage clothing. T&T law on camouflage clothing. (n.d.). Retrieved
October 9, 2022, from http://trinidadandtobagolegalrights.blogspot.com/2015/02/t-law-
on-camouflage-clothing.html#:~:text=Q%3A%20What%20is%20the%20law,and
%20Tobago%20Defence%20Force...&text=98.