Republic of the PhilippinesCAPIZ STATE

UNIVERSITYPONTEVEDRA
CAMPUSBailan, Pontevedra, Capiz
College of Management
Module 3: Worksheet 2 in BA 316
International Business Environment: Essay Part 2
1st Semester, A.Y. 2022-2023

Name: Vanisa D. Castillo Course/Yr./Sec.: BSBA 3D

Professor: Mr. Justine Joshua Bermudez
Directions: Essay. Be brief and concise in writing your answers to the following questions.
Evaluation
1. Discuss the various key economic issues that influence international business.
Answer: This are key economic issues that influence international business:
Inflation - is the pervasive and sustained rise in the aggregate level of prices measured by an
index of the cost of various goods and services. Inflation results when aggregate demand grows faster
than aggregate supply- essentially, too many people are trying to buy too few goods, thereby creating
demand that pushes prices up faster than incomes grow. Consider the impact of inflation on the cost of
living. Rising prices make it more difficult for consumers to buy products unless their incomes rise at the
same or faster pace.
Unemployment - The unemployment rate is the number of unemployed workers divided by the
total civilian labor force, which includes both the unemployed and those with jobs. In practice, measuring
the number of unemployed workers actually seeking work in various countries is difficult given the lack
of a standard measurement method. Generally, people out of work and unable to find jobs depress
economic growth, create social pressure, and provoke political uncertainty.
Debt - Debt, the sum total of government’s financial obligations, measures the state’s borrowing
from its population, from foreign organizations, from foreign governments, and from international
institutions. More recently, many countries have borrowed from international lenders to finance their
movement to freer markets, a process of economic transition. Many countries that began with this
ambition but that eventually failed then increasingly had to rely on foreign debt.
Income Distribution - GNI or PPP, even weighted by the size of the population, can misestimate
the relative wealth of a nation’s citizens. Uneven income distribution is not a problem of poorer nations.
There is a strong relationship between skewed income distributions and the split between those who live
in urban settings versus those who live in rural areas.
Poverty - A related but separate issue concerns poverty- the state of having little or no money,
few or no material possessions, and little or no resources to enjoy a reasonable standard of life. In many
parts of the world, workers and consumers struggle for food, shelter, clothing, and clean water, health
services, to say nothing of safety, security, and education.
The Balance of Payments - The Balance of Payments (BOP), officially known as the statement of
International Transactions, records a country’s international transactions that take place between
 Republic of the PhilippinesCAPIZ STATE
UNIVERSITYPONTEVEDRA
CAMPUSBailan, Pontevedra, Capiz
companies, governments, or individuals. Managers use the BOP as a comprehensive indicator of a
country’s economic stability.

2. You are a marketing manager of a textile company that is looking to venture into international
business. The country you want to target first is the UK. You want to start by exporting to UK.
What environmental factors would you keep in mind and how would you analyze the business
environment of the UK?

Answer: Assess your company's export readiness.

Build an export plan.
Research and select your target market.
Create an export marketing plan.
Determine the best methods of delivering your product or service to your target market.
Develop a sound financial plan.
Understand the key legal aspects of international trade.

3. Why is it difficult for a marketer to position products in a culturally diverse nation like
Philippines?
Answer: At every level, including consumer behaviour and preconceived notions about how
advertising functions, cultural diversity has an impact on marketing and advertising concepts and
executions. The most important cultural element in advertising is typically the nation's ideals.
4. Is the economic environment same all across the globe or it differs? Give valid arguments to
support your answer.
Answer No, because some nations are developed, others are developing, and still others are in a
poor state, the economic climate varies around the world. As a result, a country's economic
situation is influenced by both its population and level of development; if a country is
developing, the economic climate may be slightly more favourable.
5. How does the technological environment of the Philippines differ from that of Japan?
Answer: Both nations are tropical; in the summer, Japan is almost as hot and humid as the
Philippines; both countries are island-based, and both experience devastating typhoons and
earthquakes.