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 Effects of foreign environment on international business operations Components of Foreign Environment Foreign environment consists of geographical, economic, financial, socio-cultural, political, legal and ecological forces . A firm needs to examine these components of the environment for each one of the foreign countries in which it operates. * GEOGRAPHIC ENVIRONMENT The foreign environment, which includes a nation's climate, topography, natural resources, and population, is influenced by geography. Everybody doing business internationally needs to be somewhat familiar with the geographical characteristics of the other nation because these impact the traits and nature of a community. It also has an impact on the demand patterns of the local population. One of the main factors influencing the development of business systems, trade centres, and routes is geography.  Demand for various products is influenced by a variety of climatic factors, including temperature, humidity, win...

 MICRO AND MACRO ENVIRONMENT A business firm's environment can be characterized as the different external actors and forces that surround the company and have an impact on its operations and decisions. According to this definition, the environment has two main features: first, these actors and forces are external to the company, and second, they are basically uncontrollable. Little can be done by the company to alter them. Instead, it must learn to coexist with them. Micro Environment: The actors in the firm's immediate surroundings that have a direct impact on its operations and decisions are referred to as the micro environment. Among them are suppliers, a range of market intermediaries, and service providers like middlemen, transporters, warehouses, marketing and advertising research companies, business advisory firms, and financial institutions; rivals, clients, and members of the public. Although the firm's market is made up of its customers, suppliers and market inter...