Question

1. Imagine that you are considering expanding and diversifying your tech business into international

markets. Before you decide to make this shift in your company, you want to weigh the advantages

and disadvantages of international trade. Identify and analyze several advantages and several

disadvantages that you would consider and explore how international trade may impact the

decisions that you make for your business. Explain. Then discuss the impact of cultural and social

environments on global trade.

Answer 1

A good way to determine if expanding the business into international trade is to use a tool to analyze the international enviroment.

The tool that can be used is PESTEL, which is an accronym for Political, Economical, Social, Technological, Enviromental, and Legal factors.

To complete a Pestel, the strategist of the company simply has to add the relevant factors related to the external enviroment in each one of the six cateogories.

Like this, the strategist can analyze the international enviroment, in order to determine whether it is advisable to expand the technological business or not.