Political and legal forces are matters of governmental and regulatory importance that influence the management of businesses. Economic forces includes financial, economic, and infrastructure variables. Competitive forces include factors such as the numbers of a company's competitors and their strategies, cost structures, and product quality. International Business Environment Managers of international companies must be concerned with external forces in all of the national business environments in which the company is involved. Five Influential Groups Consumers around the world are developing similar wants and needs for certain products.
Workers can more easily relocate when employment opportunities dwindle in the home country.
Companies sell goods and services around the world and acquire investment capital through international financial markets. Governments procure products from international suppliers to accomplish social, economic, and military goals. Financial Institutions help companies raise capital and invest excess cash in world financial markets. International Business Management Internal forces are those elements over which a company can exercise a greater measure of control-such as human resource management and marketing management. Standardization versus Adaptation Companies can obtain cost savings by standardizing various elements of their activities, including production methods, marketing strategies, and corporate policies.