Define international business environment. Differentiate between micro and macro environment with examples

The international business environment encompasses factors that affect a company’s operations on a global scale.

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Microenvironment involves elements directly influencing a firm, such as customers and suppliers. Macroenvironment, on the other hand, includes broader external forces like economic, political, and cultural conditions.

Example of microenvironment: A company’s relationship with its suppliers or the preferences of its target market.

Example of macroenvironment: Changes in exchange rates, government policies, or global economic trends impacting a company’s international operations.