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Foreign and Domestic Environments

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Why do foreign and domestic environments operate differently?

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Solution Summary

This is an explanation on why and how different environments operate.

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One factor that causes foreign and domestic environments to operate differently is political forces. Let's first consider tariff. The foreign business can only export the required amount of tariff that is required by the local government. Thus, business in the foreign countries must adhere to the laws of doing business in other countries. In contrast, domestic environment operates according to their local laws, yet the government can affect the operation of the local company by affecting the ...

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