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Economic
To see an example of the economic environment within an international business, one could look at the impact of oil on a global scale. There are numerous domestic oil companies (within several independent countries’ borders), and as oil prices fluctuate, so does the effect on each country’s economic sector. Even here in the United States, as oil prices change (whether demand or supply), so too does the variation in the economy.
Political
Some of the factors to review in this environment are the type of governmental system, types of trade agreements, and trade barriers (tariffs, taxes, and regulations). For instance, we want to examine what type of government is in place. Is it a democracy? Is it authoritarian? By looking into these details, one can see how the country is run, and study any political barriers that may become obstacles to placing a corporate product within that country. Several of the political factors are closely tied to the legal environment.
Legal
Public international law, private international law and foreign law.
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