4. How do the legal–political, economic, and cultural environmental differences within a country affect a firm’s international business transactions? Provide examples.

• legal–political environment

• Each country has its own laws. These laws dictate the kind of business that can exist, its organization, tax liabilities, minimum wage, prices for goods and services. When these laws differ significantly from domestic firms will meet big operational problems. For example: USA set quotas on cars imported from Japan.

• Political relationships between countries influence what companies can do internationally. For example: after revolution on Kuba USA made embargo on conducting trade with it. Kuba was dependent on USA sugar.

• Countries have different systems of law. For example: in Great Britain common law heritage in which precedent set rules, and in Saudi Arabia thare is theocratic law system, which is defined by religion

• economic environment

• Poor countries (India, Ethiopia,Bhutan) have smaller markets on some types of products. For instance books and magazines

• In poor countries (Chad,Ethiopia) people are uneducated companies should give them additional trainings, use more supervises, simplify workrelated duties

• Inadequate infrastructure (roads,ports,electrical power,communication facilities) in poor countries leads to supply problems

• Because of poverty in poor countries, there is greater incidence of civil disorder and also great chance for gets to threat foreign firms the reason of their citizens ills

• Exporters to these countries face variations in their ability to sell and receive payments for G&S

• cultural environment. It refers to specific learned norms of society?based on attitudes, values, beliefs. Fro example: Pork products are not accepted in Muslim countries; legs of frogs are not accepted in Russia

5. What is international business? How does the management of an international business differ from that of a domestic one? Provide examples with specific firms and countries in mind.

• International business is all commercial transactions (private (for profit) and get between 2 or more countries.

• International business relates to profit-related activities conducted across national boundaries (International company>20% of revenue abroad).

The environment for those business activities within which the international manager functions is shaped by major developments in the world. Such developments are globalization; the various regional trading blocs such as the European Union with the introduction of the Euro as its legally tradable currency; the North American Free Trade Agreement (NAFTA); the Commonwealth of Independent States (CIS); information technology; workforce diversity; the status of the emerging economies of China, India, Mexico and Brazil; and the unstable political situation in various parts of the world, such as the one in Afghanistan, the Middle East, and in various parts of Africa.

Company operating in the international business .eld will engage in modes of business, such as exporting and importing, that differ from those it is accustomed to on a domestic level.

• Countries differences. For example management in Japan and USA.

Japan: LR orientation, collective decision making, involvement of many people in decision process, slow decision making and fast implementation ,informal organizational structure

USA:SR orientation, individual decision making, involvement of few people in decision process, fast decision making and slow implementation, formal bureaucratic organizational structure