Definition of Business Environment:

The business environment includes everything that affects how a company operates,
both internally and externally. This includes employees, customers, management,
supply and demand, and business regulations.

Key Differences Between Domestic and International Business:

1. Domestic Business: Transactions occur within one country's borders.
Example: A local bakery selling its products only within the city.
International Business: Transactions involve multiple countries.
Example: A multinational company manufacturing goods in China and selling
them in Europe, Asia, and North America.

2. Domestic Business: Operations are limited to the home country.

International Business: Operations span across multiple countries.

3. Domestic Business: Standards may be local.

International Business: Adheres to global standards.

4. Domestic Business: Deals in one currency.

International Business: Deals in multiple currencies.

5. Domestic Business: Requires less capital.

International Business: Requires more capital due to larger scale.

6. Domestic Business: Faces fewer restrictions.

International Business: Faces more regulations across various countries.

 7. Domestic Business: Similar customer base.
International Business: Diverse customer base across countries.

8. Domestic Business: Easier research.

International Business: More complex and expensive research due to global
scope.

9. Domestic Business: Factors of production are mobile.

International Business: Factors of production may face restrictions in
movement across borders.

The Filipino Way of Doing Business:

 Focus on building friendly relationships.
 Politeness and smiling are valued.
 Summer-weight clothing is common.
 Restrictions on foreign ownership in the Philippines.
 Christmas is a time for gift-giving and appreciation.

Local Environment of the Firm:

 Christmas is a time to show appreciation. Through Token and Gifts. Gifts could
be range from BASKET OF GOODIES to company giveaways.
 Office hours are 8:00 - 5:00 with one hour lunch break. Banks are 9:00 - 3:00.
Offices are generally close during weekends.
 Philippines have its own etiquette.
 -To show respect, Filipinos usually address people by their titles.
 -Everyone avoids loss of face.
 -English is the official business language, documents are written in english
however it is common to hear "Taglish".
 -Business lunches and dinners usually arranged through phone and confirmed by
the secretary. The one who invites customarily pays.
International Business Environment:
 Easier communication.
 Differences in culture impact business practices.
 Geert Hofstede's model categorizes cultural differences into dimensions.