International business consists of all the factors around the business in which business exists.

International business consists of transactions that are devised and carried out across national to satisfy the objectives of individual and organization. The elements of geography such as location, topography, climate, natural resources play very important role for the business people Relevance Of Location: Location plays a vital role in the success of any product mainly when company is doing business internationally. The main objective of every company is maximum acceptability of their product Therefore, it is the primary requirement in front of every manufacturing industry is to develop the most suitable location of their product to derive maximum benefits. Location helps to generate sales, increase in demand, to retain the previous customer, to reduce transportation availability of cheaper raw material etc are various advantage of effective location Relevance Of Topography: Topography is one of the essential elements of geography which consist of the layer of land such as plateau, hills plains, mountain etc. The people residing in different topography enjoy different taste , food , behavior and thus affect the business decisions If the target market of company resides in the plain area they have much easier life style whereas people residing in hilly areas have much tougher lifestyle and these have immediate effect on the buying habits of the consumer

Relevance Of Climate: Climate is the third and the most essential element of geography . As with the change in the climate need of consumer is also change. In the summer there is increase demand of cool drinks cotton cloths , ice creams , cool products etc and in the same way in winter the demand of woolen cloths , winter soaps , heater , blower etc These all thing stimulate the demand of the product . An in the same way demand of umbrella , plastics bags , plastics shoes in winter increases Therefore , it is necessary for every industry to consider the climatic factors while manufacturing the product

Relevance Of Natural- Resources: Natural resources of any place are the mineral, raw material, ores, mines etc available at the particular place. The natural resources available in the area also stimulate the buying decision because the people of these areas are based on agriculture, use wood for cooking instead of gas, involve in various natural activities for their livelihood. The natural resources also affect the decision of establishment of

production centre and their success so, in this manner the entire above thing described impose a deep impact on the buying behavior of business people

International business
International business can be defined as: Business transactions crossing national borders at any stage of the transaction. It can also be defined as: International business is a transaction between businesses that are located in different countries, as opposed to domestic business, which is a transaction between businesses in the same country.

Why are businesses involved in international business?

Expansion globally has proven to be quite profitable as well as increase the overall value in a company. International business allows for an increase in profit potential, access to needed raw material and etc.

International business is all business transactions-private and governmental-that involve two or more countries. Why should one be interested in studying international business? The simplest answer is that international business comprises a large and growing portion of the world's total business. Today, almost all companies, large or small, are affected by global events and competition because most sell output to and/or secure suppliers from foreign countries and/or compete against products and services that come from abroad. More companies that engage in some form of international business are involved in exporting and importing than in any other type of business transaction. Many of the international business experts argue that exporting is a logical process with a natural structure, which can be viewed primarily as a method of understanding the target country's environment, using the appropriate marketing mix, developing a marketing plan based upon the use of the mix, implementing a plan through a strategy and finally, using a control method to ensure the strategy is adhered to. This exporting process is reviewed and evaluated regularly and modifications are made to the use of the mix, to take account of market changes impacting upon competitiveness. This view seems to suggest that much of the international business theory related to enterprises, which are internationally based and have global ambitions, does often change depending on the special requirements of each country. Another core issue is the company's growth and the importance of networking and interaction. This view looks at the way in which companies and organizations interact and consequently network with each other to gain commercial advantage in world markets. The network can be using similar subcontractors or components, sharing research and development costs or
3

operating within the same governmental framework. Clearly, when businesses formulate a trading block with no internal barriers they are actually creating their own networks. Collaborations in aerospace, vehicle manufactures and engineering have all sponsored the development of a country's or a group of countries' outlook based on their own internal market network. This network and interaction approach to internationalisation shows the substance of being able to influence decisions when knowing how the global network players work or interact. For example, a crucial market network is that of the Middle East. Middle East countries are rich, diverse markets, with a vibrant and varied cultural heritage. This means that although there has been a harmonization process during the past few years, differences still exist. Rather than business being simpler as a result, it should be recognized that because of regulations and the need those countries have to restructure as they enter the global market, performing any kind of business can be highly complex. It should be remembered though that the MiddleEastern countries have a low-income average and like to have their cultural differences recognized. Those firms that will or have recognized these facts have a good chance of developing a successful marketing strategy to meet their needs. Fortunately some firms have realized these important differences and reacted adequately when strategic decisions had to be made regarding their penetration to this kind of markets.

Background:
In the business market there is so much competition that companies sell outside the country to increase sales. Increasing internationalization of business is requiring managers to have a global business perspective and an understanding of the differences in the environmental forces of the markets in which they operate. Decision making in the international environment is more complex and having an understanding of the external environmental forces enables international managers to be alerted to new opportunities. Physical and environmental forces are commonly called uncontrollable forces. Although managers have no direct control over these forces, knowledge of these forces will better prepare them for greater success in the international business environment. Four of these physical and environmental forces are identified and their impact is discussed as follows: 1. 2. 3. 4. climate topography the relative availability of natural resources Location
4

1.

Climate:

Climate encompasses the statistics of temperature, humidity, atmospheric pressure, wind, rainfall, atmospheric particle count and other meteorological elemental measurements in a given region over long periods. Types of climate:

1) Mediterranean

The Mediterranean climate is typically characterized by cool to warm summers and hot winters.

2. Arctic

Arctic climates are typically characterized by: Very cold [link blocked]temperatures in the winter and cool temperatures in the summer Low [link blocked]humidity Low amounts of [link blocked]percipitation Little cloud cover resulting in very directional [link blocked]lighting Very long daylight hours during the summer, and very short daylight hours during the winter

3. Temperate

Temperate climates are typically characterized by: Warm to hot temperatures in the summer season, and cool to cold temperatures during the winter Higher [link blocked]humidity in the summer and lower humidity in the winter Medium to high amounts of [link blocked]precipitation A range of cloud cover, often resulting in diffuse [link blocked]lighting Significant differences in number.

4. Tropical

Tropical climates are typically characterized by: Hot temperatures throughout the year High humidity High amounts of precipitation A range of cloud cover, often resulting in diffuse lighting Relatively little change in length of daylight hours in the different seasons

5. Desert

Desert climates are typically characterized by: Cold temperatures at night and hot temperatures in the daytime Low humidity Low amounts of precipitation Little cloud cover resulting in very directional lighting Because most of the world's deserts are located close to the equator, desert climates tend to have relatively little change in length of daylight hours in the different seasons
6

2.

Topography

It is also the description of such surface shapes and features (especially their depiction in maps). In a broader sense, topography is concerned with local detail in general, including not only relief but also vegetative and human-made features, and even local history and culture.

Influence Of Climate And Topography On International Business:

These sources of environmental differences surface when people communicate on a wide spectrum of business-related subjects. Notions of transportation and logistics, settlement, and territorial organization are affected by topography and climate. For example, transportation and logistics in one culture may seem patently absurd in another. The manager of a Canadian company doing business in South America might never think to ship goods from Chile to neighboring Argentina by the circuitous route of the Panama Canal. Because Canada is relatively flat and has an excellent network of railroads and highways, the Canadian manager might assume that the easiest way to transport goods for any short distance would be overland. This preference would be reinforced by the fact that many Canadian waterways freeze over due to its harsh climate. As a result, the Canadian might well assume or even specify a preference for overland transport in any relevant business communication. What the Canadian might not understand in such a situation is that the rugged physical environment of the Andean terrain and the related absence of cross-Andean railroads and freeways would make such an option unreasonably expensive or even impossible. By contrast, warm water ports and relatively easy access to the Panama Canal or other waterways would reinforce the option of water routes even for such relatively short overland distances.

Climate and Topography Influence on I.B in Reference Of Case Study:

Climate and Topography Analysis Gerardo Gerry Camacho University of Phoenix BUS-475 November 2, 2009 Climate and topography are two very important factors that may influence industries profitability and productivity. Is important for business leaders to recognize how climate and topography factors impacts different industries. Recognizing climate and topography could be of assistance for businesses venturing into the global business environment arena. Climate and topography are factors of huge importance when determining location and strategic planning. One of the industrys most affected by climate and topography is the transportation industry. The transportation industry is vital to any economy. The transportation industry takes care of moving people and merchandize by land, sea, and air. One may say this industry is the veins and arteries of the economy. Topography has a direct impact on this important industry. The relationship between the location of roads, seaports, airports, and populated areas are crucial. Construction of new roads and bridges must take into consideration soils studies and topographic charts. The construction and location of airports needs to consider noise abatements areas and topographic configurations that may present obstacles to landing and departing aircraft. Airports also are extremely dependent on climate considerations. Apart from their primary functions such as handling passengers, freight and aircraft, airports nowadays play a strategic role in regional development and are key facilities for the competitiveness of any territory. Airports are engines for economic activity, create direct and indirect employment and may act as innovative centers for new (environmental) technologies within a region.

Natural resource
A natural resource is anything people can use which comes from nature. People do not make natural resources, but gather them from the earth. Examples of natural resources are: air, water, wood, crude oil, solar energy, wind energy, hydro-electric energy, and coal. Refined oil is not a natural resource, for example, because people make it.

Types of natural resources: We often say there are two sorts of natural resource: renewable resources and non-renewable resources.

A Renewable Resource grows again or comes back again after we use it.

For example, sunlight, water, and trees are renewable resources.

A Non-Renewable resource is a resource that does not grow or come back, or a resource that would take a very long time to come back.

For example, coal is a non-renewable resource. When we use coal, there is less coal afterward.

Influence of natural resource on i.b..

10

Today the corporate are highly mobile. Today the Lakshmi Mills is seriously thinking of shifting the factory within Coimbatore to unleash the value of the property , Hindustan Unilever is shifting factory from Maharashtra to North eastern state to avail the subsidies provided by the state governments, Tvs Group is having a plant at China and India is becoming Global hub for Automobile Manufacturing. Rich natural sources in developing nations have been exploited in order to meet out the financial obligations. Herman Daly argues that ecological and sociological dimensions would be more prominent in international trade if trade were conducted between national communities rather than individual firms. The nations could more effectively seek multilateral balances based on the physical amounts of resources traded as opposed to financial balances. This would allow the nation to have resources deficit or surpluses with specific nations while maintaining an overall balance. the availability or unavailability of natural resources affects the international business in the following ways. First, countries that are rich in natural resources experience booms and busts, not only due to commodity price fluctuations in world markets but also due to resource discoveries that typically create intermittent upswings in export earnings that cause the national currency to appreciate in real terms to the detriment of other export industries. In second place, according to Resource Abundance and Economic Development (Auty, Richard M. [ed.]) countries that are rich in natural resources tend to be spoiled by rent seeking on the part of producers who thus divert resources away from more socially fruitful economic activity. The combination of abundant natural resource rents, ill-defined property rights, imperfect or missing markets, and lax legal structures may have quite destructive consequences. Third, natural resource abundance may blunt private and public incentives to save and invest and thereby impede economic growth. Specifically, when the share of output that accrues to the owners of natural resources rises, the demand for capital falls, and this leads to lower real interest rates and less rapid growth. In other words, natural capital may crowd out real capital as well as human and social capital. Moreover, if mature institutions are conducive to an efficient use of resources, including natural resources, and if poorly developed institutions are not, then natural resource abundance may also retard the development of financial institutions in particular and hence discourage saving, investment and economic growth through that channel as well. Forth and last, natural resource abundance may reduce openness by discouraging exports and capital inflows. The Dutch disease manifests itself through reduced incentives to produce non-primary goods and services for export which the overvalued currency of the resource abundant country renders uncompetitive at world market prices. Hence the reduction in trade

11

3.

Location:

Where the country is located, whose its neighbors are, and where its capital and major cities are should be a part of the general knowledge of all international business people. Location is important because it is an important factor in explaining a number of a nations political and trade relationships , many of which directly affects a companys operations.

Influence of location on International business:

Location of a country and surface features such as mountains, plains, deserts and bodies of water contribute to differences in economies, cultures, politics and social structures which make physical and environmental forces important. Site selection is a critical variable in the influence that place has on the intercultural negotiation process. Inevitably, site selection will heavily impact negotiating outcomes For this reason, choice of location is a focal decision point during the pre-negotiation phase. More specifically, site selection will affect psychological climate, space availability, time factors and limits, stress management, team building, information flow (including setting the agenda), and adoption of communication channels among other factors. For example, in cases where negotiations take place in the host nation, the host country negotiators typically assume responsibility for the protocols that govern location, transportation, orientation, introductory information (i.e., credentials, business cards, dress codes, social events and seating arrangements) and accommodations

12

International Location Multinationals have located subsidiary businesses in other countries for many years. In recent years, this trend has gathered pace as part of globalization. There are specific reasons why businesses might want to locate overseas. Many countries place restrictions of one kind or another on imports, usually to protect their own domestic businesses. One of the main ways is to levy a tariff, or import duty/tax. Wages vary enormously from country to country, mainly in line with different costs and standards of living. There are costs of employment to go on top of wages as well. Some countries have an awful lot of laws and paper work before a business can get started. Some developing countries are particularly bad in this respect. So, although they look very cheap place to locate, when we take into account the general hassle factor, we may decide not to bother. This is another factor that goes in favour of apparently "expensive" developed economies. Many cheap developing countries are politically unstable. Attracting big investments from foreign business brings many benefits, not least new jobs. So many governments create financial incentives. Some businesses like to think of themselves as great global adventurers and levellers of barriers, so it suits the fantasies of their managers to open up all over the place.

13