International-Business-Dr-R-Chandran-E-book

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International Business- Dr. R. Chandran
terms of revenue generation due to female customers. The
female work force is very strong in various sectors in many
countries. Examples are: Indian women in IT enabled services
and handicrafts, Chinese women in the soft toys and ceramics
and Indonesian women in garments and paper work, who have
brought great success to their countries.
7. Double Income Families
As the household income increases, the demand for the number
of products increases proportionately. This is specially true for
packaged food items, electronic gadgets, household appliances,
health equipment, Japanese entertainment electronics and
French perfumes dominate in the whole of Europe and North
America. Pizza Express, McDonald and Kentucky Fried
Chicken invariably rule the households of double income
families throughout the world.
8. Impulse buying
Benefit oriented buying is taking place everywhere. Preplanned
shopping and scheduled purchases are gradually going
away. Throughout the world, people need instant items. They
see, ask and buy. It is a major challenge to international
businessmen to provide benefits to lure impulse buying.
POLITICAL ENVIRONMENT.
The political environment in international business operates in
different dimensions:
1. The home country political environment;
2. The host country political environment, and
3. The global political environment.
1. Home Country Political Environment
In an ideal world, one would not normally expect domestic policies to
affect the firm’s international activities. Some countries like the USA
encourage their organization to establish activities abroad, especially
in their core competency fields. Japan encouraged their electronics
and auto companies to spread their activities outside Japan. Domestic
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