Geographic environment do not affect demand pattern of the people living in the country.
Geographic environment is an important component the foreign environment and refers to a country’s climate, topography, natural resources and people. Everyone engaged in international business must have some knowledge of geographic features of the foreign country as these influence the nature and characteristics of a society. It also affect demand pattern of the people living in the country. Geography is a major contributory factor to the development of business systems, -trade centres and routes.
Different climatic conditions give rise to demand for different types of products. It is largely due to climatic differences that people differ in their housing, clothing, food, medical and recreational needs. Many a time needs are same, and demanded. But because of the climatic and topographic differences, products need adaptation or modifications to suit local conditions.
Geographic conditions also affect a firm’s plant location decision. A firm prefers to set up its
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