Business at an international level is also affected by various factors. These can be due to the physical location of the country or due to some political matters in the country.

Some of the major factors in business are as follows −

●      Geographical factors − Many different geographical factors like the geographical size, the climatic challenges occurred recently, the available natural resources in a specific region, the population distribution in a nation, etc. affect international business.

●      Social factors − The internal factors or happenings inside a nation also plays a very important role in internal business. These include −

○    Political policies − Political conflicts, mostly those that result in military confrontation can disturb trade and investment.

○    Legal policies − National and international laws have a crucial role in framing how an enterprise can operate overseas.

●      Behavioral factors − In a foreign unknown surrounding, the related studies like anthropology, psychology and sociology assists the managers to have a better understanding of values, attitudes and beliefs.

●      Economic forces − Economics explains the differences among countries in terms of costs, currency values and market size.