Question

19 Mark X if TRUE                                                                                                                 _______Environmental Forces include both Internal and External forces impacting business. _______External forces are uncontrollable factors that affects international business only. .                                                                                                         _______Internal forces are controllable factors which management can control.                        

20

List the 5 External Environmental Forces that impact business (domestic or international).       i)________      ii)________      iii)_______ ,      iv)_______          v)______

21

List 3 of the 5 factors that make international business different from domestic business. (i)__________               (ii)_______                  (iii)________     

  

Answer 1

19. Environmental forces include internal and external forces impacting business

False - environmental forces includes external forces that impact business.business environment is basically the sum total of external forces that are outside the control of business organisation. This further includes a specific and general forces. specific forces have direct influence on the business organisation whereas general forces have indirect influence.

External forces are uncontrollable factors that affect international business only

False- external forces are uncontrollable factors that affect both domestic as well as international business. As these factors are external, that is why the businessman does not have any control over this factors. Example: creditors, suppliers investors government competitors customers are all external forces.

Internal forces are controllable factors which management and control.

True- internal factors are within control of business organisation. These factors include policy, plans, budget, memorandum of association, article of association, four pillars of marketing etc.

20. Five external environmental forces that impact business:

1. Political environment

2. Economic environment

3. Social environment

4. Technological environment

5. Legal environment

21. Factors that make international business different from domestic business:

1. Geographical area

Domestic business is carried out within the country where is international Business is carried out globally across the borders.

,2. Restriction

Domestic business is not controlled by tariffs and quotas. Where is many restrictions are imposed on international business through licensing, Tarrif and non tarrifs barrier.

3. Currency

Domestic business decision single currency. International business deals in multiple currencies.