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sOCIOCULTURAL ASPECT OF INternational business

A set of beliefs, customs, practices and behaviour that exists within a population. International companies often include an examination of the socio-cultural environment prior to entering their target markets.

socio-cultural aspects of International business

Socio and culture

Society and culture have an impact on every aspect of the International Business. Although society and culture are not directly included in business operations, they indirectly appear as key elements in shaping how the business is managed, from what goods are produced, and how and through what means they will be sold. International business should be aware of the attitudes, values, and beliefs in each host country where decided to expand their business activities.

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CULTURE

LANGUAGE

RELIGION

LEVEL OF EDUCATION

CUSTOMER PREFERENCES

socio-cultural factors that have a major Impact on the INTERNATIONAL BUSINESS

ATTITUDE OF THE SOCIETY TOWARDS FOREIGN GOODS AND SERVICES

RELIGION

From the perspective of the International Business, religion is an important social factor that should take in consideration when some company decides to operate in a given country. Religion, through its effects onpeople, affects international business and its operations

LANGUAGE

The diversity of language among various foreign countries is a source of many challenges for International Business.

CULTURE

Culture is defined as shared motives values, beliefs, identities, and interpretations or meaning of significant events that result from common experiences.

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ATTITUDE OF THE SOCIETY TOWARDS FOREIGN GOODS AND SERVICES

The social and government attitudes towards foreign business, especially towards foreign companies and their products, are one of the social factors that may have a significant impact on the performance of International Business.

customer preferences

The needs and tastes of consumers in various countries are significantly becoming similar or habits become identical on a global level.

level of education

Education significantly affects the lifestyle of a population of any country in the world, the way of their thinking, their attitude toward work, etc. Economic potential and progress of any country depend on the education of its population. Analogously, education has notably impact on international business

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ContacT

01

Given the rapid pace of technological change, it is vital that firms carefully study different elements in the technological segment. The marketers need to identify the speed with which substitute technologies are likely to emerge and the timing of any major technological changes.

Section 02

Technological

ECONOMIC

Economic factors are connected with goods, services, and money. Despite directly affecting businesses, these variables refer to financial state of the economy on a greater level — whether that be local or global. The reason for this is that the state of the economy can decide many of the important details that come up in an operating company, including topics such as consumer demand, taxes and asset value.

Examples of economic factors affecting business include: -POVERTY-Exchange rates -Recession -Inflation -UNEMPLOYMENT-DEBT

POLITICAL

Political factors are government regulations that influence business operation positively and negatively. Managers must keep a bird’s eye view over political factors. These factors may be current and impending legislation, political stability and changes, freedom of speech, protection and discrimination laws are factors affecting business operation and activities. Political can impact a business by making the market environment more or less friendly for that business. Typically, governments have a great deal of power over businesses and many times, there is not much that businesses can do about it.

Employment Laws: Employment laws are made to protect the rights of employees and include every aspect of employer/employee relationship.

Foreign Trade Regulations: Every business has a need to expand business operation to other countries

Political stability: Lack of political stability within a country can significantly impact the operations of a business.

Tax and economic policies: Increasing or decreasing rate of taxes is a good example of a political component.

Political Factors Affect Business Environment