Complete details of Natural and Demographic enviroment after complete study the slides are being made.We have priviledged to provide you all the components of the Demographic and Natural Enviroment that are affecting International business in one or another way. An important topic of International business #internationalbusiness #componentsofib #demographicenviroment

1. INTERNATIONAL BUSINESS ENVIRONMENT

2. INTRODUCTION
The international environment is going through a historic transformation.
We are moving away from a world in which national economies were
relatively isolated from each other by different barriers, towards a world in
which national economies, are merging into an interdependent global
economic system. The emerging global economy creates opportunities as
well as presents challenges and threats to the business

3. COMPONENTS OF INTERNATIONAL BUSINESS
ENVIRONMENT
 NATURAL ENVIRONMENT
 DEMOGRAPHIC ENVIRONMENT
 SOCIO-CULTURAL ENVIRONMENT
 POLITICAL ENVIRONMENT
 LEGAL ENVIRONMENT
 ECONOMIC ENVIRONMENT
 TECHNOLOGICAL ENVIRONMENT

4. DEMOGRAPHIC
ENVIRONMENT

5. DEMOGRAPHIC ENVIROMENT
• Demography:- Is the study of human populations in terms of size,
density, location, age, gender, race occupation, and other statistics.
• Demography is very important because it involves people, and people
make up markets.
Factors affecting Demographic Enviroment
• Age structure
• Gender
• Income distribution
• Family size
• Language
• Population size

6. Age :
Age is another demographic element that impacts
businesses.
This is because consumer needs and wants change
with their age.A Company's products and services are
more likely to appeal to certain age groups.
-Younger people under 35 are often the first consumers
to purchase high-tech products like cell phones,
electronic books and video games..

7. Gender Inequity..?
 Gender is another demographic environment that affects several types of
businesses.
 Gender inequality refers to unequal treatment or perceptions of individuals based
on their gender .
 It tries to understand the nature of gender inequality, and examines
women's social roles, experiences, and interests .
 Gender inequality is still a huge issue today, where males are
considered superior to females .

8. GENDER INEQUALITYAROUND THE
WORLD
Limited Access to Resources
Women are responsible for 60-80% of food production, but have limited access to resources such as
land, credit and new technologies
Lack of Education
Education and poverty reduction go hand in hand. Progress is being made, but there are still less girls
in school or finishing school. This also has to do with living in rural areas.
Access to Healthcare
Many women die in childbirth in the developing world and is usually completely avoidable if
proper healthcare was available.

9. Income distribution
 Often the single most important piece of information needed by
international business about a country is its income level.
 Income level provides clues to the purchasing power of
residents. The technological sophistication of local production
processes, and the status of the public infrastructure.
 The unequal distribution of household or individual income
across the various participants in an economy. Income
inequality is often presented as the percentage of income to a
percentage of population.

10. FAMILY SIZE
As the family size increases, so does the consumption of
products.
In such a case, the family pack or the economy refill packs
works very
well.
For large families, family income will be high , and thus,
greater consumption of products.

11. LANGUAGE
 Number of languages the world range from 4000 to 10000.
Some of the same words of the same language have
different meanings or connotations in different place.
 In the Spanish speaking Latin America the language vocabulary varies widely.
For example, while Tambo mean a roadside inn in several countries like
Colombia , a diary farm in some countries like Argentina, in Chile stands for
brothel.
 India has numerous languages and their dialects, besides the 18 officially
recognized languages, of the 1652 mother tough listed by the census of India, 33
are spoken by people numbering a lakh or more.

12. POPULATION SIZE
 The size of the population is an important determinant of demand for many
products.
 A rapidly increasing population indicates a growing demand for many
products.
 High population growth rate also indicates an enormous increase in labour
supply.
 Poor countries with small population are generally not attractive for business.

13. NATURAL ENVIROMENT
The natural environment encompasses all living and non-living
things occurring naturally on Earth or some region thereof. It is an
environment that encompasses the interaction of all living species.X
Human survival and economic activity dependent of this specific type of
climate, weather, and natural resources.

14. COMPRISES OF
• NATURAL RESOURCES
• Climate
• Population
• Political Enviroment
• Socio-Cultural Enviroment

15. Natural Resources
 Natural resources include things such as precious metals, rare
earth metals, base metals, industrial minerals, gemstones and
construction materials (aggregate, sand, clay, limestone).
 These materials are found in various types, proportions and
qualities across the globe. The natural resources of a country can
contribute significantly to its economic development through
increasing production and manufacturing, securing energy
supply, increasing export revenues and reducing costs for local
businesses and households.

16. Climate
The climate of any particular place is influenced
by a host of interacting factors.
These include latitude,elevation, nearby
water, ocean currents,topography, vegetation,
and prevailing winds. The global climate system
and any changes that occur within it also
influence local climate.

17. Population
 A population is often described as a group of individuals of the same
species that inhabit the same area. Therefore, all of the people you
encounter each day are part of your population.
 Other examples of populations include the dandelion plants growing in a
field or the cockroaches that inhabit a single house.
 On a larger scale, you can think of all humans on Earth as the human
population. As of 2011, the human population exceeded seven billion
people! Although the human population has been around this size for
most of us for our entire lives, the population has not always been so large.

18. POLITICAL ENVIRONMENT
 At the basis of international law and international relations:
sovereignty (self determination and independence from
external interference, authority over all nationals)
 International trade limits sovereignty.
 Governments can invoke sovereignty and jeopardize firm’s
operations

19. Political Risk
 Risks related to Government Trade Policies
-tarrifs
-exchange rate controls
-quotas
-Export import licence requirement

20. SOCIO-CULTURAL ENVIRONMENT
International business means operating in a
cross cultural environment.
This makes the business more complex because
the business firm must appreciate how different
the foreign culture is from their own and how
this difference is to be reflected in their
business strategies.

21. Thank you
Made by : Jasjeet singh
Pgdm 2yr
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