Republic of uzbekistan andijan machine-building institute fundamentals of business management

Economic conditions.When prices increase and the purchasing power of the state decreases, the 
demand for its currency disappears. Inflation reduces the purchasing power of a currency. For 
example, hyperinflation in Brazil reduced the demand for the real. Political instability. Companies 
and individual entrepreneurs try to avoid risk when doing business in another country. If there is a 
sudden change in government management, this can create a bad situation for foreign business. In 
addition, political stagnation can occur when new laws are developed. These laws do not allow to 
operate on the basis of previous laws and regulations. 
international business environment 
Doing business in other countries requires knowledge of the differences between people and 
places. An enterprise must consider four main factors - geography, cultural influence, economic 
development, political and legal issues. 
geography 
Location, climate, land supply, ports, as well as the country's natural resources influence business 
activities. Very hot weather limits the types of crops that can be grown. Rivers and ocean ports are 
where people can easily ship products for foreign trade. Limited natural resources are closely 
related to countries' imports. 
cultural influence 
In some cultures, a hug is considered a reliable guarantee of business cooperation, while in other 
cultures, a handshake is sufficient. 
Culturegeneral behavior, character of people and value of society. Folk culture has a strong 
influence on business. For example, in Mexico, all work is stopped at noon, because it is customary 
to enjoy lunch and rest at lunch time. 
the influence of cultural and social factors, language, religion, values, and customs is the main 
factor in international business. This includes cooperation between relationships, families, unions 
and other organizations. 
economic development 
Countries and individuals face the challenge of limited resources to meet their needs and wants. 
You are always thinking about making decisions about the use of time, money and energy. 
Similarly, each district plans to use its land, natural resources, wealth and work to meet the needs 
of its people. 
In other countries, people live in a straw hut in their village, to operate a manual loom for their 
own people. These differences reflect the level of economic development. the main factors 
affecting the level of economic development of the country: 

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• implementation of the best educational system 
• more and better services and goods for its citizens. that there 
is no production to provide. 
Infrastructure is another factor that supports international trade in industrialized countries. 
Infrastructure refers to transportation, communication, district and nation engineering systems. If 
we take Germany as an example, we can see that it is a good factor for international business 
compared to other countries with an efficient railway system, highways, as well as computers and 
weak infrastructure.