Today with the globalization of the world economy, Different nations all over the world are experiencing an essential change in the way they deliver and market various items, products, and service the national economies which were in the past Trying to self-sufficiency

Today their do not so they free their markets instead than looking for new ways to join the international trade through import and export with many nations they sought after getting a Trade balance surplus witch lead to Foreign Currency Flow and raise the exchange rate of the local currency

so overseas the different nations could use the other nations resources products, goods, service witch never founded in their lands and shipping their surplus stuff abroad that what made the world as a global village that whole its resources from everywhere through a balanced competition has improving and promoting day after day with the aim of Satisfying human instincts

so the international trade expresses the commercial relation between nations and protects and improve the national resources (human, financial, physical, knowledge, technological, information) through its properties and qualities

International business environment:

In this age business organizations are working in an open business environment that influenced by it and influence on it in the same time That depends on The ability of the organization to control  the Environmental variables that’s because some of this variables can be controlled and some can not it can only trying to adapt with

So international organizations must dealing with a variety of international business environmental factors

the best way to understand these factors is to divide it into three broad groups

1 -Domestic Environment

2- Foreign Environment

3 -Global Environment

1-Domestic Environment

Any country around the global has its own properties and variables and its own nature witch different with other countries that make the Multi-branches business organizations have to get more flexibility and decentralization with their branches In the different countries markets

For example “McDonald’s” has different menu options in the different markets

So every single country needs a special way to do pricing and promoting and distributing processes which depend on the domestic environment elements

these elements including the following:

Cultural and Social

Through history, the cultural and social variables are forming the principles, Customs, traditions, morals, ethics of the community which leads to radical change of  the society individuals behavior

This changes influences shape a consumers preferences and their motives

If we took Egypt as an example then this cultural and social element its not only has a difference between country to country its different from city to city in the same country

such as the way people in north Egypt wearing clothes and the northerners do this leads to changes in the types of clothes that distributed in Egypt.

Politics

Politicians may take coercive actions to reduce trade obstacles and increase global competition even the cultural and social element could impact the politics considerably the conservative governments are restricting the products it views as promoting lifestyles contrary to conservative values

Economic Conditions

The general economic status of society influence the purchasing power of the individual

Therefore the acts of the consumers with the various prices products and the motives of purchasing them

Also, the Economic system followed in the country would  make a difference in the way of the organizations work under the socialist system or capital system

The Competition

frequently the newcomers would trying to attract customers through low pricing on the product with a quality that is very close to the organization product what puts him in a position has to take a reaction the level of competition impacts of the organizations marketing strategy and tactics and the way its pricing and promoting and producing.

Legally

the governments and judicial bodies and parliaments may pass laws restricting particular trade practices or criminalize the use of certain products, for example, using Marijuana in Canada is allowed but it’s not in most countries

Technological improvement

In developing countries, if someone wants to pay for his Consumption of electricity through internet mostly he couldn’t put it quite the contrary in the developed countries

So the technology infrastructure influences the domestic marketing environment in a number of ways.

Logistics

The process of delivering products is so important part of marketing processes logistics is the most impact element on this process to reach domestic customers in a timely manner organizations needs to a well-developed logistics infrastructure a national logistics infrastructure of warehouses, distributors and transport operators will help you to access your market easily.

Successful organizations that working in other countries witch Adapt with this countries domestic environments and exploits the domestic variables to make advantage through study and scrutinize the environment as well and put current plans and future strategies to deal with this environment

2- Foreign Environment

Effect of Foreign Environmental differences on the guest business organizations

(1) Currency Differences

There is variation between currencies used in various countries and there are fluctuations in their exchange value

The organizations in host country have to make all payments for their imports in host country currency which may not freely available due to regulations.

(2) Difference in Natural and Geographical Conditions

The difference in natural and geographical conditions like raw materials and fresh water weather etc. impact on the way organizations producing and choose the appropriate kind of products and services for example Type and characteristics of vehicles appropriate for the desert environment May not appropriate for the snowy environment

Also may the natural geography of the land coast Increase the costs of the delivering process

(3) Production needs

Such as availability of skilled labours And raw materials , electricity , local suppliers , And its infrastructure for mobility etc.

(4) Difference in Political Systems

every country has its own political system and there is different commercial laws and roles such as Imposition of tariffs and customs duties on imports and exports and Imposition of more taxes for foreign investors that would make reservations on the decision to invest in these countries

(5) Difference in Legal Systems

This difference would make the more complex of in business processes and all guest companies have to and follow legal provisions of the two countries as regards to a particular trade

(6) Population and Occupation Distribution

The Distribution of the population and the educational level and occupational distribution are influence of availability skilled and experienced employees in foreign countries which should be the company’s human resources management To take advantage of this to increase the organization’s efficiency

7) Transportation Infrastructure

We pointed out previously to the importance of transportation Infrastructure in host countries witch impact on the process of distribution and delivering and the cost of transportation systems in the host country to transport the raw materials and finished products from sources to production plant and from the production plant to market also impact on the decision on expanding the business by international

(8) Differences in Production Costs

we pointed out previously to the natural and geographical difference, Currency differences, transportation infrastructure which leads to a considerable difference in the production costs

so availability of skilled employees developed technology, effective transport channels, quality natural resources, local suppliers, etc. are directly, significantly impact on the cost of production.

3-Global Environment

Superficiality we can say that is domestic environment is our native people and matters inside and foreign environment is outside native people and matters so upon that global environment is contain both together as a contact between them that created a new environment with new effect properties and roles and variables that organize and manage and influence the relations and business between the global countries.

Among these Effects:

General Agreement on Tariffs and Trade (GATT)

It was first discussed during the United Nations Conference on Trade and Signed on 30 October 1947 in Geneva was signed by 23 nations and took effect on 1 January 1948

GATT created as an agreement to give more freedom to world trade to reduce tariffs that cripple the world trade

World Trade Organization (WTO)

it’s an institution, not an agreement as was GATT  and its concerned with organizing and regulation of international businesses between the global on 15 April 1994, 123 countries signed the Marrakesh Agreement to replace the General Agreement on Tariffs and Trade (GATT)

its officially started work on 1 January 1995 to be the largest international economic organization in the world and to organize the trade between its 161 members and sets a rules that governing the trade between them and providing a framework for negotiating trade agreements , and  resolving  disputes between members.and prohibits discrimination between trading partners and all member countries will have equal representation

The changes in various environmental factors globally including the following:

• The changes due to trade-related agreements between a set of countries
• The changes in demand factors due to better alternative products discovery,
• The changes in demand and supply conditions of a commodity in global market
• The changes in consumer attitude and aspiration due to societal reasons,
• The changes in economic conditions of countries globally,
• The changes in political scenario of the countries and the consequence
• The changes in business factors due to unexpected natural calamity or man-made disasters including long-time cold war or full-fledged war,
• The changes in individual country legal systems as well as changes in global legal system