International business environment

1. International business environment

2. What is Business..?? • A business is a legally recognized organization  designed to provide goods and services to consumers with the motive of earning profits.

3. What is environment..?? • Circumstances, influences, stresses, and competitive, cultural, demographic, economic, natural, political, regulatory, and technological factors (called environmental factors) that effect the survival, operations, and growth of an organization.

4. Business Environment • Definition of Business environment by Davis Keith “ The Aggregate of all conditions events and influences that surround and affect business.”

5. need & Importance of Business Environment. To make business socially acceptable.To keep the business enterprise alert.To maintain adaptability to socio-economic changes.To understand future problems and prospects.To ensure optimum utilization of resources.

6. Types of Business Environment.

7. global financial system • financial system consisting of institutions and regulators that act on the international level, as opposed to those that act on a national or regional level. The main players are the global institutions, such as International Monetary Fund and Bank for International Settlements, national agencies and government departments, e.g., central banks and finance ministries, private institutions acting on the global scale, e.g., banks and hedge funds, and regional institutions, e.g., the Eurozone. • Deficiencies and reform of the GFS have been hotly discussed in recent years.

8. Historical perspective • The gold standard is a monetary system in which the standard economicunit of account is a fixed weight of gold. • The gold exchange standard,the countries which had adopted this system announced convertability of there domestic currencys into pounds,dollars and frances and tried to secure exchange stability • The BrettonWoods system of monetary management established the rules for commercial and financial relations among the world's major industrial states in the mid-20th century • Floating Exchange Rate- floating exchange rates change freely and are determined by trading in the forex market.

9. International monetary fund • The International Monetary Fund (IMF) is an international organization that was created on July 22, 1944 at the Bretton Woods Conference and came into existence on December 27, 1945 when 29 countries signed the Articles of Agreement.[1] It originally had 45 members. The IMF's stated goal was to stabilize exchange rates and assist the reconstruction of the world’s international payment system post-World War II. Countries contribute money to a pool through a quota system from which countries with payment imbalances can borrow funds temporarily

10. Voting power • Voting power in the IMF is based on a quota system. Each member has a number of “basic votes" (each member's number of basic votes equals 5.502% of the total votes),plus one additional vote for each Special Drawing Right (SDR) of 100,000 of a member country’s quota.[30] The Special Drawing Right is the unit of account of the IMF and represents a claim to currency. It is based on a basket of key international currencies.

11. OPERTIONS OF IMF • PROVISIONS RELATING 2 LENDING OPERATIONS • PROVISIONS RELATING 2 EXCHANGE STABILITY • PROVISION RELATING 2 EXCHANGE CONTROL OPERATIONS • P. RELATING 2 THE FUNDS BANKING FUNCTIONS

12. SPECIAL DRAWING RIGHTS (SDRS) • Special drawing rights (SDRs) are supplementary foreign exchange reserve assets defined and maintained by the International Monetary Fund (IMF). Not a currency, SDRs instead represent a claim to currency held by IMF member countries for which they may be exchanged.[1] As they can only be exchanged for euros, Japanese yen, pounds sterling, or US dollars,[imf 1] SDRs may actually represent a potential claim on IMF member countries' nongold foreign exchange reserve assets, which are usually held in those currencies

13. IBRD OR THE WORLD BANK

14. Asian development bank

15. General Agreement on Tariffs and Trade • The General Agreement on Tariffs and Trade (GATT) is a multilateral agreement regulating international trade. According to its preamble, its purpose is the "substantial reduction of tariffs and other trade barriers and the elimination of preferences, on a reciprocal and mutually advantageous basis.

16. World Trade Organization • The World Trade Organization (WTO) is an organization that intends to supervise and liberalizeinternational trade. The organization officially commenced on January 1, 1995 under the Marrakech Agreement, replacing the General Agreement on Tariffs and Trade (GATT), which commenced in 1948

17. Trade bloc • A trade bloc is a type of intergovernmental agreement, often part of a regional intergovernmental organization, where regional barriers to trade, (tariffs and non-tariff barriers) are reduced or eliminated among the participating states.[1]

18. UNCTAD • The Information Economy Report is published annually. It analyses current trends and major international policy issues regarding information and communication technologies and their use for, and effect on, trade and development.

19. European Economic Community • The European Economic Community (EEC) (also known as the Common Market in the English-speaking world and sometimes referred to as the European Community even before it was renamed as such in 1993) was an international organisation created by the 1957 Treaty of Rome.[1] Its aim was to bring about economic integration, including a common market, among its six founding members: Belgium, France, Germany, Italy, Luxembourg and the Netherlands