LOCATIONAL , TOPOGRAPHY ,

CLIMATE,NATURAL
RESOURCES OF
INTERNATIONAL BUSINESS

PRESENTEDBY:
ANANDU VINOD & SUDHI S
INTERNATIONAL BUSINESS

• International business refers to the trade

of goods, services, technology, capital and
knowledge across national borders and at a global or
transnational level.
• It involves cross-border transactions of goods and
services between two or more countries.
• Transactions of economic resources include capital,
skills, and people for the purpose of the
international production of physical goods and
services such as finance, banking, insurance, and
construction. International business is also known
as globalization.
FACTORS AFFECTING INTERNATIONAL
BUSINESS
• There are various companies that are involved in
international business, and the working of those
companies is further affected by some factors that
might or might not be under its control.
• The company’s interaction with the environment
determines its success or failure. There are certain
restrictions also that are imposed on the companies,
and their working is affected by the different forces.
• There is little influence on the environment by the
companies
There are two types of factors that
affect international business:
• External factors
• Internal factors
External factors

• It includes various factors such as social

conditions of the economy, the influence of the
political environment and there are also some
legal factors that affect the working of the
business.
1. Social conditions
2. Influence of political conditions
3. Legal practices
4. State of economy
5. Advancement in technology
Internal factors influencing
international business
• These are the factors that are under the control
of the company. The company can change these
factors as per the need and requirements.
• Land
• Labour
• Capital
• Location
• Natural Resource
• Climate
Impact Of Climate Changes
• Increased Risk Due to Extreme Weather
1. Scientists have linked climate change1 to increasing
frequency and intensity of extreme weather events
including storms, floods, droughts and heat waves.
2. In the coming years, we will likely see more events
that disrupt the operations of businesses and cause
them extreme financial and physical damage.
3. Severe weather is a primary reason that climate
change increases risk for businesses. Because of this
increased risk, insurance costs for many companies
will rise as well.
• Changing Demand
• As the climate changes, demand will shift. As
global temperatures rise, for instance, demand
for heating oil will decline — as will demand for
other winter goods. More consumers are also
prioritizing sustainability in the products they
buy, shifting demand toward more
environmentally friendly goods.
• Changes in Resource Availability and Cost
• These extreme weather events have the potential
to disrupt supply chains making getting the
resources and materials businesses need more
challenging.
• Severe drought and weather pattern changes
may cause a shortage of crops used for food,
apparel and other products
• Increased Public Pressure
• As the public grows more accepting of climate
change as fact, it becomes less accepting of
businesses that don't work to reduce their
environmental impact. Increasingly, consumers
look for products that are sustainably produced
or at least have a smaller environmental impact
than other comparable products.
Natural Resources
• Resources are important for the
development of any country. For example, to
generate energy, one need fossil fuels; and for
industrial development, we require
mineral resources. 6. Irrational consumption
and over utilisation of natural resources has
led to socio-economic and environmental
problems.
LOCATION
• Making location decisions for the production of
products is a key aspect of strategic and
logistical decision-making for manufacturing
firms.
• The optimum locations may offer competitive
advantage and may contribute to the success of
an enterprise