Question

What are the four components of the global business environment?

Answer 1

Answer:

Geographic conditions; cultural and social factors; political and legal factors; and economic conditions.

Explanation:

Geographic conditions are extremely important, since the location of a country can increase distribution costs, the larger the distance the more expensive the trip. Also, inland countries have higher transportation costs than countries with coastal regions.

Cultural and social factors can be a significant challenge for corporations trying to enter new markets, for example the Chinese market is huge as well as the cultural differences between their culture and American culture.

Political and legal factors can complicate trade, for example countries that favor free markets and are more receptive to foreign trade.

Economic conditions are basic for a good global business environment, when the global economy is growing, world trade increases, and vice versa.

Answer 2

Geography, cultural and social factors, economic conditions, and political and legal factors are the four parts of the international business environment