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This analysis explores the effects of international business activities on local, state, and national economies. Key factors influencing a country's economic development include the balance of payments, where a favorable balance often strengthens currency value, and unfavorable conditions lead to depreciation. Economic circumstances, such as fluctuating prices and buying power, also play a crucial role. Additionally, political stability affects international business decisions, as companies seek environments with minimal risk to protect their investments.
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International Development BCS-BE-8c. Describes the impact of international business activities on the local, state and national economies.
Infrastructure a nation’s transportation, communication and utility systems
Factors That Affect a Country’s Level of Economic Development 1. Balance of Payments – when a country has a favorable balance of payments, the value of its currency is usually constant or rising. When a nation has an unfavorable balance of payments, its currency usually declines in value. When it is favorable, the country has trading power with other countries 2. Economic Conditions – when prices increase and the buying power of the country’s money declines, its currency is not as appealing 3. Political Stability – companies and individuals want to avoid risk when they do business with other nations. If a government changes suddenly, this may create an unfriendly setting for foreign business due to the risk of losing its assets.
