Explain four environmental factors that should be taken into account when operating a business in a foreign country.

      

Explain four environmental factors that should be taken into account when operating a business in a foreign country.

  

Answers


Martin
Four environmental factors are;

- Tax regulations- whereby the tax rates are different in all countries thus the entrepreneur should familiarize himself with the relevant charges.

- Foreign exchange fluctuations- the entrepreneur should consider how the fluctuations will affect his returns and make the relevant decisions.

- Political stability e.g. Somalia-the entrepreneur should consider the political stability of the country he is investing in as a politically unstable country would result in the business incurring huge losses .e.g. In wartime, countries such as Somalia.

- Legal procedures followed to register businesses- he should ensure that he adheres to all the legal procedures requires to register a business.

marto answered the question on February 4, 2019 at 11:43


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