"International Business: Session 5" The state is responsible for making all decisions: what goods and services the country produces; quantity of production; prices at which they are sold; and distribution. | International Business Session 5 Understanding and Analyzing International Markets Political Economic Social/Cultural Technological P E S T 2 PEEST, PESTEL, PESTLE, SLEPT, STEEPLED, PEST LIED (L)egal (E)nvironmental (Ecological/Physical) (E)thical (E)ducational (D)emographic 3 Understanding and Analyzing International Markets Political - includes (L)egal, (E)nvironmental law/policy Economic - includes (E)nvironmental climate and weather Social/Cultural - includes (D)emographic, (E)thical, (E)ducational, (E)nvironmental attitudes Technological P E S T 4 Key Variables Politics Political System Legal System Laws (affecting business) National Trade Policies Government Stability and Risk Openness to FDI Economics and Market Characteristics Economic System Per Capita GDP and Growth Rate Purchasing Power Inflation Rate Middle Class Size Currency Convertibility and Trends Social / Cultural and Demographic Dimensions of culture Beliefs and Attitudes Language Religion Population and Age Structure Education Urban/Rural Composition Technical Infrastructure ICT level Productivity Cost and Accessibility of Energy Processes and Supply Chain Medical 5 Economic Systems Command Economies (Centrally Planned) Market Economies Mixed Economies Command (Centrally Planned) Economies The state is responsible for making all decisions: What goods and services the country produces; Quantity of production; Prices at which they are sold; and Distribution The state owns all wealth, land, and capital, and allocates resources based on which industries they want to develop. Command economies were common in the 20th century; they proved so inefficient that most have gradually died out. Central planning is less efficient than market forces in synchronizing supply and demand. Today many countries exhibit some characteristics of command economies- examples- China, India, Russia, and certain countries in Central Asia, Eastern Europe, and the Middle East. Market Economies Decisions regarding . | International Business Session 5 Understanding and Analyzing International Markets Political Economic Social/Cultural Technological P E S T 2 PEEST, PESTEL, PESTLE, SLEPT, STEEPLED, PEST LIED (L)egal (E)nvironmental (Ecological/Physical) (E)thical (E)ducational (D)emographic 3 Understanding and Analyzing International Markets Political - includes (L)egal, (E)nvironmental law/policy Economic - includes (E)nvironmental climate and weather Social/Cultural - includes (D)emographic, (E)thical, (E)ducational, (E)nvironmental attitudes Technological P E S T 4 Key Variables Politics Political System Legal System Laws (affecting business) National Trade Policies Government Stability and Risk Openness to FDI Economics and Market Characteristics Economic System Per Capita GDP and Growth Rate Purchasing Power Inflation Rate Middle Class Size Currency Convertibility and Trends Social / Cultural and Demographic Dimensions of culture Beliefs and Attitudes Language Religion Population and Age .
