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Lesson 5: The Local and International Business Environments

The document discusses the local and international business environments. It identifies factors like weather, culture, and outsourcing that affect local environments and stresses the importance for international companies to consider government stability, consumer incomes, cultural differences, and technology compatibility in foreign markets. It also outlines the five phases of economic development from mercantilism to current globalization and explains how businesses enable resource flow and economic growth within a country.

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Bai Nilo
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490 views6 pages

Lesson 5: The Local and International Business Environments

The document discusses the local and international business environments. It identifies factors like weather, culture, and outsourcing that affect local environments and stresses the importance for international companies to consider government stability, consumer incomes, cultural differences, and technology compatibility in foreign markets. It also outlines the five phases of economic development from mercantilism to current globalization and explains how businesses enable resource flow and economic growth within a country.

Uploaded by

Bai Nilo
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd

Lesson THE LOCAL AND

INTERNATIONAL BUSINESS
5 ENVIRONMENTS
OBJECTIVES:

At the end of this lesson, the students will be able to


1. recognize the factors that affect the local business environment,
2. acknowledge the forces that affect the international business environment,
3. discuss the different phases of economic development, and
4. explain the role of business in the economy.
THE LOCAL BUSINESS ENVIRONMENT

• The local business environment is defined by political, economic, social,


and technological forces that affect business firms.

• Factors affecting the local business environment are:


1. Weather conditions,
2. Calamities,
3. Culture, and
4. Outsourcing of business functions.
THE INTERNATIONAL BUSINESS
ENVIRONMENT

• The international environment is also defined by political, economic, social, and technological
forces that affect business firms. Companies that operate on an international scale should take
note of the environments of specific countries they operate in.

• They also should take note of the following:


1. stability of the government,
2. economic infrastructure and income of consumers,
3. cultural differences, and
4. compatibility of its technology
PHASES OF ECONOMIC DEVELOPMENT

•Developments in the global economy are influenced by the changes in two significant aspects:
(1) The capacity to produce or manufacture, and
(2) The capacity to distribute or transport.

•The five phases of economic development are the following:


1. Mercantilism (1500-1780),
2. Industrial Revolution (1780-1880),
3. Fordism (1880-1970),
4. Post-Fordism (1970-2010), and
5. Globalization (2010-Present).
THE ROLE OF BUSINESS IN THE ECONOMY

• The business sector plays a vital role in the economy as business transactions enable the
flow of money and resources in and out of the country. An active business sector will
result increased profits and better conditions for emerging businesses, leading to
economic growth.

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