"1International Business Environment2Table of ContentsIntroduction ..................................................................................................................................... 3Objectives ....................................................................................................................................... 4PESTEL Analysis ........................................................................................................................... 4PESTEL and Globalization ............................................................................................................. 8Factors Favouring Industry Globalization ...................................................................................... 9Markets ........................................................................................................................................... 9Costs ................................................................................................................................................ 9Governments and Competition ..................................................................................................... 10Posting as a Stealth Kind of Internationalization .......................................................................... 10Outsourcing through offshoring .................................................................................................... 11Conclusion .................................................................................................................................... 12Reference List: .............................................................................................................................. 143IntroductionIn the event that the business is deciding to the foreign market or launching a new product,business owners require into account several factors and understand the greater forces shapingtheir selections (Lewis and Gates, 2005). One of the best ways to measure any decision is tocarry out a PEST, Political, Financial, and Social and Technical analysis.Any successful small business requires understanding that political, environmental and culturalissues range from country to country. This implies you need to have a thorough understanding ofthe marketplace you are about to offer with. At the same time, PEST helps you understand howthe mechanics of one market may impact the dynamics of another (Czinkotaet al. 2009). I wantto closely look at what PEST analysis really is and how it can optimize your business.PESTEL analysis is an important and widely used tool that helps show big picture of a firm'sexternal environment, specifically as related to international markets. PESTEL is an acronym forthe politics, economic, sociocultural, technological, environmental, and legal contexts where afirm operates. A PESTEL analysis helps executives gain an improved understanding of theopportunities and hazards they face; consequently, the analysis helps with building an improvedvision for the future business landscape and how the firm might compete profitably (Wildet al.2014). This useful tool analyses for market growth or decline and, therefore, the position,potential, and direction for an enterprise. When a firm is considering entry into new markets,these factors are of considerable importance. In addition, PESTEL analysis provides informationinto the status of key market flatteners, both in conditions with their present state and futuretrends.As stated byKurtz and Boone, (2008), Firms need to know the microenvironment to ensure thattheir strategy is aligned with the powerful forces of change impacting their business landscape.Once organizations exploit a change in the environment--rather than simply survive orresist??Disobey the change--they are more likely to be successful. A solid knowledge ofPESTEL also helps managers avoid strategies that may be doomed to get damaged given thecircumstances of the planet. JCPenney's failed entrance into Chile is a case in point.Finally, understanding PESTEL is critical prior to entry into a brand new country or region. Thetruth that a strategy is congruent with PESTEL in the home environment gives no assurance it "