International
business
environment
What is Business..??

A business is a legally
recognized organization designed to
provide goods and services to consumers
with the motive of earning profits.
What is environment..??

Circumstances, influences, stresses,
and competitive, cultural,
demographic, economic, natural, political,
regulatory, and
technological factors (called environmental
factors) that effect the survival, operations,
and growth of an organization.
Business Environment

Definition of Business environment by Davis
Keith “ The Aggregate of all conditions events
and influences that surround and affect
business.”
To maintain adaptability to socio-economic
changes.
To understand future problems and
prospects.
To ensure optimum utilization of resources.
Types of Business Environment.
Political
Demographic
Economic
Business
Inter- Environment
Social
national
Natural
Technological
global financial system
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financial system consisting of institutions and
regulators that act on the international level, as
opposed to those that act on a national or regional
level. The main players are the global institutions,
such as International Monetary Fund and Bank for
International Settlements, national agencies and
government departments, e.g., central
banks and finance ministries, private institutions
acting on the global scale, e.g., banks and hedge
funds, and regional institutions, e.g., the Eurozone.
Deficiencies and reform of the GFS have been hotly
discussed in recent years.
Historical perspective

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The gold standard is a monetary system in which
the standard economic unit of account is a fixed
weight of gold.
The gold exchange standard,the countries which
had adopted this system announced convertability
of there domestic currencys into pounds,dollars and
frances and tried to secure exchange stability
The Bretton Woods
system of monetary management established the
rules for commercial and financial relations among
the world's major industrial states in the mid-20th
century
Floating Exchange Rate- floating exchange rates
change freely and are determined by trading in the
forex market.
International monetary fund

The International Monetary Fund (IMF) is
an international organization that was created on
July 22, 1944 at the Bretton Woods Conference and
came into existence on December 27, 1945 when
29 countries signed the Articles of Agreement.[1] It
originally had 45 members. The IMF's stated goal
was to stabilize exchange rates and assist the
reconstruction of the world’s international payment
system post-World War II. Countries contribute
money to a pool through a quota system from which
countries with payment imbalances can borrow
funds temporarily
Voting power

Voting power in the IMF is based on a
quota system. Each member has a number
of “basic votes" (each member's number of
basic votes equals 5.502% of the total
votes),plus one additional vote for each
Special Drawing Right (SDR) of 100,000 of
a member country’s quota.[30] The Special
Drawing Right is the unit of account of the
IMF and represents a claim to currency. It
is based on a basket of key international
currencies.
OPERTIONS OF IMF
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PROVISIONS RELATING 2
LENDING OPERATIONS
PROVISIONS RELATING 2
EXCHANGE STABILITY
PROVISION RELATING 2
EXCHANGE CONTROL
OPERATIONS
P. RELATING 2 THE FUNDS
BANKING FUNCTIONS
SPECIAL DRAWING RIGHTS
(SDRS)

Special drawing rights (SDRs) are
supplementary foreign exchange
reserve assets defined and maintained by
the International Monetary Fund (IMF). Not
a currency, SDRs instead represent a
claim to currency held by IMF member
countries for which they may be
exchanged.[1] As they can only be
exchanged for euros, Japanese
yen, pounds sterling, or US dollars,[imf
1] SDRs may actually represent a potential
claim on IMF member countries' nongold
foreign exchange reserve assets, which
are usually held in those currencies
IBRD OR THE WORLD BANK
Formation
1944
Type
Development finance
institution
Legal status
Treaty
Purpose/focus
Development
assistance, Poverty
reduction
Headquarters
Washington, D.C.
Membership
187 countries
President of the World
Bank
Jim Yong Kim
Parent organization
World Bank Group
Website
worldbank.org/ibrd
Asian development bank
General Agreement on Tariffs
and Trade

The General Agreement on Tariffs
and Trade (GATT) is a multilateral
agreement regulating international
trade. According to its preamble, its
purpose is the "substantial reduction
of tariffs and other trade barriers and
the elimination of preferences, on a
reciprocal and mutually
advantageous basis.
World Trade Organization

The World Trade
Organization (WTO) is an
organization that intends to
supervise and liberalize international
trade. The organization officially
commenced on January 1, 1995
under the Marrakech Agreement,
replacing the General Agreement on
Tariffs and Trade (GATT), which
commenced in 1948
Trade bloc

A trade bloc is a type
of intergovernmental agreement,
often part of a
regional intergovernmental
organization, where
regional barriers to trade,
(tariffs and non-tariff barriers)
are reduced or eliminated
among the participating states.[1]
UNCTAD

The Information Economy
Report is published annually. It
analyses current trends and
major international policy issues
regarding information and
communication technologies
and their use for, and effect on,
trade and development.
European Economic
Community

The European Economic
Community (EEC) (also known as
the Common Market in the Englishspeaking world and sometimes referred to
as the European Community even before
it was renamed as such in 1993) was
an international organisation created by the
1957 Treaty of Rome.[1] Its aim was to
bring about economic integration, including
a common market, among its six founding
members: Belgium, France, Germany, Italy
, Luxembourg and the Netherlands