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4. Overview of the International Business Environment The International Business Environment Financial Management Outside of the U.S. > The International Business Environment Free to share, print, make copies and changes. Get yours at www.boundless.com www.boundless.com/finance?campaign_content=book_192_section_137&campaign_term=Finance&utm_campaign=powerpoint&utm_medium=di rect&utm_source=boundless

5. The international business environment can be defined as the environment in different sovereign countries, with factors exogenous to the home environment of the organization, influencing decision-making on resource use and capabilities. The political environment in a country influences the legislation and government rules and regulations under which a foreign firm operates. The technological environment comprises factors related to the materials and machines used in manufacturing goods and services. Economic factors exert huge impacts on firms working in an international business environment. The economic environment relates to all the factors that contribute to a country's attractiveness for foreign businesses, such as monetary systems, inflation, and interest rates. Overview of the International Business Environment Free to share, print, make copies and changes. Get yours at www.boundless.com www.boundless.com/finance/textbooks/boundless-finance-textbook/financial-management-outside-of-the-u-s-21/the-international-business- environment-137/overview-of-the-international-business-environment-558- 4281?campaign_content=book_192_section_137&campaign_term=Finance&utm_campaign=powerpoint&utm_medium=direct&utm_source=boun dless Coca-Cola View on Boundless.com Financial Management Outside of the U.S. > The International Business Environment

6. Free to share, print, make copies and changes. Get yours at www.boundless.com Appendix

7. Key terms competitiveness Pertains to the ability and performance of a firm, sub-sector or country to sell and supply goods and services in a given market, in relation to the ability and performance of other firms, sub-sectors or countries in the same market. monetary system A set of policy tools and institutions through which a government provides money and controls the money supply in an economy. the law of one price The real price of a good must be the same across all countries. Free to share, print, make copies and changes. Get yours at www.boundless.com Financial Management Outside of the U.S.

8. Coca-Cola The Coca-Cola Company (NYSE: KO) is an American multinational beverage corporation and manufacturer, retailer and marketer of non-alcoholic beverage concentrates and syrups. It works in an international business environment. Free to share, print, make copies and changes. Get yours at www.boundless.com Fotopedia. CC BY http://images.cdn.fotopedia.com/flickr-1455131734-original.jpg View on Boundless.comCC BYhttp://images.cdn.fotopedia.com/flickr-1455131734-original.jpgView on Boundless.com Financial Management Outside of the U.S.

9. Free to share, print, make copies and changes. Get yours at www.boundless.com Financial Management Outside of the U.S. Which of the following circumstances might influence a business not to invest in a specific foreign country? A) All of these answers. B) The country's laws provide inadequate protection for intellectual property. C) The country's currency is susceptible to high inflation. D) The country's neighbors have lower inflation rates.

10. Free to share, print, make copies and changes. Get yours at www.boundless.comwww.boundless.com Boundless - LO. "Boundless." CC BY-SA 3.0 http://www.boundless.com/CC BY-SA 3.0http://www.boundless.com/ Financial Management Outside of the U.S. Which of the following circumstances might influence a business not to invest in a specific foreign country? A) All of these answers. B) The country's laws provide inadequate protection for intellectual property. C) The country's currency is susceptible to high inflation. D) The country's neighbors have lower inflation rates.

11. Attribution Wikipedia. "Purchasing power parity." CC BY-SA 3.0 http://en.wikipedia.org/wiki/Purchasing_power_parityCC BY-SA 3.0http://en.wikipedia.org/wiki/Purchasing_power_parity Answers.com. "What is the definition of Global Business Environment." CC BY-SA http://wiki.answers.com/Q/What_is_the_definition_of_Global_Business_EnvironmentCC BY-SA http://wiki.answers.com/Q/What_is_the_definition_of_Global_Business_Environment Wikipedia. "the law of one price." CC BY-SA 3.0 http://en.wikipedia.org/wiki/the%20law%20of%20one%20priceCC BY-SA 3.0http://en.wikipedia.org/wiki/the%20law%20of%20one%20price Wikipedia. "monetary system." CC BY-SA 3.0 http://en.wikipedia.org/wiki/monetary%20systemCC BY-SA 3.0http://en.wikipedia.org/wiki/monetary%20system Wikipedia. "competitiveness." CC BY-SA 3.0 http://en.wikipedia.org/wiki/competitivenessCC BY-SA 3.0http://en.wikipedia.org/wiki/competitiveness Free to share, print, make copies and changes. Get yours at www.boundless.com Financial Management Outside of the U.S.