This document discusses several factors that affect international business, including locational factors like climate, natural resources, and geography. It outlines external factors such as social, political, legal, economic, and technological conditions. Internal factors that companies can control include land, labor, capital, location, and natural resources. The document also discusses how climate change can impact businesses through increased risks from extreme weather, shifting demand patterns, changes in resource availability and costs, and increased public pressure for sustainability.
This document discusses several factors that affect international business, including locational factors like climate, natural resources, and geography. It outlines external factors such as social, political, legal, economic, and technological conditions. Internal factors that companies can control include land, labor, capital, location, and natural resources. The document also discusses how climate change can impact businesses through increased risks from extreme weather, shifting demand patterns, changes in resource availability and costs, and increased public pressure for sustainability.
This document discusses several factors that affect international business, including locational factors like climate, natural resources, and geography. It outlines external factors such as social, political, legal, economic, and technological conditions. Internal factors that companies can control include land, labor, capital, location, and natural resources. The document also discusses how climate change can impact businesses through increased risks from extreme weather, shifting demand patterns, changes in resource availability and costs, and increased public pressure for sustainability.
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