Section B: Knowledge Activity (Q & A) Objective: To provide you with an opportun

Question

Section B: Knowledge Activity (Q & A) Objective: To provide you with an opportunity to show you have the required knowledge for this unit. The answers to the following questions will enable you to demonstrate your knowledge of: ? Cultural, historical, political, economic and general knowledge of international events that may impact international business activity ? Sources of external and internal information on international markets ? Research, data analysis and statistical analysis techniques relevant to market data Answer each question in as much detail as possible, considering your organisational requirements for each one. 1. Provide an overview of how the following factors may impact on international business (approximately 300-350 words): ? Culture ? History ? Politics ? Economy ? International events. 2. Identify four sources that you can use to obtain information on international markets (two of these should be internal organisationsources and two should be external to your organisation). 3. Identify two techniques that you can use for each of the following, and provide a brief explanation of each: ? Research ? Data analysis ? Statistical analysis.

Explanation / Answer

1. The ways in which the following factors impact international business can be as follows:

- Culture- The differences in culture can be a challenge to overcome in the case of international trade. Communication is a big factor for this difference. International business means trading into a market and business environment of a different culture which may include habits, behaviour and language. The means of communication can become a challenge with such differences and hence slow the functioning and growth. Another reason for cultural difference can be following the organizational structure. The levels of management, the position and power of each employee vary in every country. International trade requires the understanding of such differences to make the flow of activities effective

- History- The historical events effect the economy and the market trends of any place to the great extent. Global events like world war II can also make differences in the overall impact on the international business and its growth. The country will make its policies and laws based on the history and thus these policies vary from one place to another.

- Politics- Political factors impact the international business because the government has standardized rules, policies and procedures to be followed when the country indulges in international trade. The taxes and subsidies are also fixed by the legal laws. The rules and limitations on the trade are also set by the political influences of the country. Hence the political factors play a vital role in international business.

- Economy- The economy of the country, its national income and economic growth, its market trends and buyer's purchasing power are some economic factors that affect the growth of international growth. The developed the country and its market, the easier it will be to get maximum benefit from the sales and revenues of the country.

- International events- These are all kinds of events that happen on the global basis and affect the economic, social, technological, political, legal and all types of aspects that can directly affect the international business.

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