Question

In international operations, the economic environment includes:

a.
political risks.
b.
tariffs, quotas, and taxes.
c.
social organizations.
d.
infrastructure.
e.
shared knowledge, beliefs and values.

Answer 1

The economic environment in international operations includes political risks, tariffs, quotas, taxes, infrastructure, and shared knowledge, beliefs, and values.

Step-by-step explanation:

The economic environment in international operations encompasses various factors that can impact business activities and strategies. These factors include:

1. Political risks: International operations are influenced by the political conditions and stability of a country. Political risks such as changes in government policies, regulations, and political conflicts can affect business operations and decision-making.
2. Tariffs, quotas, and taxes: The economic environment involves trade barriers imposed by governments such as tariffs (taxes on imports), quotas (limits on the quantity of imports), and taxes. These barriers can affect the cost and availability of goods and services in international markets.
3. Infrastructure: The infrastructure of a country, including transportation, communication networks, and utilities, plays a crucial role in international operations. Efficient infrastructure enables smooth logistics and distribution of products.
4. Shared knowledge, beliefs, and values: The economic environment is also influenced by the shared knowledge, beliefs, and values of people within a country. Cultural factors can impact consumer behavior, business practices, and marketing strategies.