Case Study
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In the era of globalization, more and more companies enter international markets in varying degrees. It is important that the environmental forces that impact international business are understood clearly for successful operations in different countries. These seven forces are socio-cultural forces, natural resource and environmental sustainability forces, economic and socioeconomic forces, political forces, legal forces, financial forces and the labor forces.


Religion and language are also important cultural factors that influence international business. Natural resources forces explain the significance of natural geography, topography, natural endowments, climate and sustainability of energy resources use on international business. The political system in the country reflects the will of the country in determining its course of economic growth. Political stability in the country is essential for long term prospects of business. Many countries now are more open to privatization of business. A country's economic health will determine demand for goods and services and availability of infrastructure and other resources for doing business. Maturity of legal system in a country will determine the risk of doing business in the country and is essential for fair transactions. The country's financial position in terms of balance of payments, exchange rate, inflation etc will help multinational companies to draw up strategies on investment, management of finances etc. Availability of labour and labor market trends will be important in determining setting up operations in a country.
The Case of Coca Cola operations in India indicates how these seven forces influenced the company in its ope ...
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