b.Economic Factors. In fact, the management of global supply chains poses more challenges (i.e., new and more suppliers, variable exchange rates and the change of local policies) than the management of domestic supply chains (Dornier et al., 1998). The growth in international trade allows companies to expand and explore new markets. a. Effective communication is particularly important for international businesses as there is a risk of your messages getting ‘lost in translation’. This paper examines the economic, political, and cultural factors that influence business practices in China. c. Political or legal Factors. After more than a quarter century of reform and opening to the outside world, by 2005 China’s However, as we have already mentioned, the international dimension has introduced complexity in the supply chain. The visibility of the business brand will increase. Regarding the sub part of question international market segmentation poses a challenge to Bentley as the company experienced a sudden huge decrease of sales in 2008. mainly because of the global financial crisis. Environmental factors, such as a country's legal practices, politics, social structure and technology, can make or break your business. This results in a shortage of goods within the home country. However, this doesn't guarantee their success. Adverse effects on the home industry: International business poses a threat to the survival of the infant and nascent industries. Cross-cultural understanding, along with local market knowledge, lends itself the production of more effective marketing strategy and materials.For example, high quality and culturally sensitive translations of websites, brochures, and other assets are essential. If you feel you're ready to tackle the challenges of international business, follow this advice from business leaders who have been in your shoes. 1. Find the right partners and team. 3. 11. 12. Geographic location. INTRODUCTION . and cultural environment that create risk and pose uncertainty for foreign investors. Some of the risks that international politics poses to businesses are ongoing, others only happen under the pressure of certain events and occur on an occasional basis. Benefit: Cultural sensitivity, insight, and local knowledge means higher quality, targeted marketing. Shortage of goods in the exporting country: Sometimes, traders prefer to sell their goods to other countries instead of in their own country in order to earn more profits. However, there can be considerable challenges involved in dealing with foreign clients — here are some tips for getting through the culture clash. 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