 DOMESTIC ENVIRONMENT

 FOREIGN ENVIRONMENT
 GLOBAL ENVIRONMENT
 Domestic Environment
Commercial activities conducted within a nation or
a commercial entity that conducts economic
transactions inside the borders of its home nation.
They are
 Economic Environment
 Political Environment
 Socio-Cultural Environment
 Technological Environment
 Legal Environment
 Economic Environment
The economic environment is a combination
of various economic factors which have their effect on
the working of the business. These factors influence the
buying behavior and spending patterns of consumers
and institutions.
 Political Environment

Political Environment is the state, government and its

institutions and legislations and the public and private
stakeholders who operate and interact with or influence
the system.
 Socio-Cultural Environment

A set of beliefs, customs, practices and behavior that

exists within a population. International companies
often include an examination of the socio-cultural
environment prior to entering their target markets.
 Technological Environment

External factors in technology that impact business

operations. Changes in technology affect how a
company will do business. A business may have to
dramatically change their operating strategy as a result
of changes in the technological environment.
 Legal Environment
The legal environment facing businesses operating
internationally is not simply a scaled-up version of
domestic law. Businesses are faced with legal rules
derived from multiple sources, and enforced by bodies
with fragmented and overlapping jurisdictions.