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Internal Environmental Issues Essay

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4. Effect of Domestic Environmental Issues on IB Decisions :
The domestic or internal environmental issues of a firm to be emerged as a multinational corporation play an important role in making managerial decisions related to investments in other countries. It is quite obvious that analysing environmental factors while making new business decisions. Environmental analysis is an essential prerequisite for strategic management decision-making and a greater emphasis is given today by almost all firms while expanding their business to outside their country boundary. Some of the major domestic or internal environmental factors which affect the international business decisions of the firms include Economic issues, Political issues, Socio-cultural …show more content…

Based on the firm’s experience in managing the customers with a new set of values and lifestyles in their home country, firms show interest in expanding the business to other countries where also the firm faces similar challenges.
• Since the culture and tradition of a country decide consumer behaviour in a given country, the strategies developed by the firm in the home country to handle socio-cultural issues may help its decision on international business expansion.
• The decision maker can find out the relevant similarities and differences among target markets with local market to decide what products/services may be the game changer.
• The domestic socio-cultural environment effects of the firm and its decision makers on consumer perception of products, distribution, pricing, and communications policies which can be easily tested further in international business scenarios.
(d) Technological Issues :
The domestic technological environment issue is related to the technologies developed by the firm through its efforts on R & D and other locally available technologies to improve the features of the products and services so that they can be globally acceptable and

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