Describe the driving business forces in both the foreign and domestic environment. In
what ways do they operate differently? Why? Provide an example.
**There are two forces at work within domestic and foreign markets that influence how
business will be conducted; namely, controllable and uncontrollable. Examples of
uncontrollable forces are politics, natural disasters, and the economy. Controllable
forces, such as: personnel, productivity, and salaries, are essential to meeting a
business’ short and long-term goals.
A few differences between the controllable and uncontrollable forces at work in foreign
and domestic business are that in domestic business, there is more control over
personnel, salaries, production, etc.; while in foreign business there is, to a degree, a
lack of control partly due to the different politics, economy, or way of life.
**There are five different driving forces for the foreign and domestic business
environments are as followed: market, political, competitive, technological, and cost.
Though they are the exact same types of forces, they differ from how they affect each
business environment. With foreign businesses you have a lot more of a broaden
audience to please. But, with each audience (country) comes different demands, laws,
technology, cost, and the type of market. With different laws, one country you may be
selling too may be happy to sell your product, but then their government may say no
more to your product and there goes all your sales. With technological in different
countries affect how your product will sale is huge. If the country your selling to produces
a nice product that is identical to yours and made in their home country, then you lose
business. Depending on the type of market and how much your product will cost, can
have a large affect too. With domestic businesses, it's not quite as hard to sell to the
consumers. If you are in the same country as the product you're selling, then you will not
have as much difficulty to sell it with the different types of forces.
Considering I just finished my Economic Theory class and just wrote a 10 page paper on
the American auto industry, I believe that I will use that as an example. With gas prices
going sky high over the past couple years, Americans have struggled to put gas in their
cars. But what has the American auto industry and government done to make us more
fuel efficient cars? Not much at all. That said, Japan saw that our auto industry failed to
produce a competitive car at a great price for Americans during these hard times with
ridiculous gas prices, so they figured why not give them what they want? Now, while our
auto industry is needing a bailout because of it's own and government's mistakes, Japan
is rolling in money because people are trading in their gas drinking SUVs and buying