Impact of Domestic, Foreign, and Global Environments on International Business Decisions of Multinational Firms: A Systematic Study

International Journal of Management, Technology, and Social Sciences (IJMTS), 2(2), 93-104, November, 2017.

12 Pages Posted: 30 Nov 2017

See all articles by P. S. Aithal

P. S. Aithal

Srinivas Institute of Management Studies

Date Written: November 27, 2017

Abstract

International business decisions to be taken by executive managers of multinational firms are becoming more challenging due to uncertainties in business environment which is due to fast changing and unpredictable domestic, foreign, and global environment for long term sustainability. Even though firms are cautious and take precautions while taking decisions on international investment for production and marketing, their sustainability for a long time in a given business is shaking due to continuous changes in domestic, foreign, and global business environment. This is mainly due to variations in economic conditions, political scenarios, socio-cultural environment, technological breakthroughs, legal aspects and human behavioural effects on opportunities and challenges on the international business performance of multinational firms. In this paper, we have studied in brief, the various domestic, foreign, and global environmental issues which affects the multinational firm’s business decisions related to international investments and marketing. The paper also discusses the impact of the domestic environment, foreign environment, and global environment on economical, political, technological, legal, and cultural issues on investment and expansion decisions of multinational corporations in general.

Keywords: International business decisions, Impact on domestic environment, Impact on foreign environment, Impact on global environment, Multinational firms

Suggested Citation

Aithal, P. S., Impact of Domestic, Foreign, and Global Environments on International Business Decisions of Multinational Firms: A Systematic Study (November 27, 2017). International Journal of Management, Technology, and Social Sciences (IJMTS), 2(2), 93-104, November, 2017.. Available at SSRN: https://ssrn.com/abstract=3078157

P. S. Aithal (Contact Author)

Srinivas Institute of Management Studies ( email )

Srinivas Campus
Pandeshwar
Mangalore, Mangalore 575001
India
9343348392 (Phone)

HOME PAGE: http://www.srinivasuniversity.ac.in

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