Having discussed the social role and response of multinational business in world development, let us examine some of environmental constraints that restrict business social response, especially in the developing nations.
1.Social Environment: The most evident and widespread factor in the social environment is the variation in culture among peoples. It makes each operating situation unique creating both opportunities and problems and its discussed throughout the next two chapters./
a.Social Overhead costs: Social overhead costs are public and private investments which are necessary to prepare the environment for effective operation of a new business unit./
b.Public Visibility: Not only must a multinational business live up to different standards in each country, but it also must be prepared to meet these standards.//
2.Educational Environment: The educational environment is usually a major handicap in upgrading developing nations. /
a.Scarcity of Qualified Human Resources: AN evident characterestics of developing nations is the scarcity of human resources qualified to serve social and economic needs in an advanced society. /
b.Underdeveloped Educational facilities: The shortage of qualified human resources would be less serious if execellent educational facilities were available to prepare people quickly./
3.Political Environment: The social and political environment are closely related. The political system influences attitudes of citizens and the citizens concurrently have a substantial influence on the kinds of political leaders and police which exist./
a.Nationalistic Drives:As has been mentioned , many people have strong nationalistic attitudes./
b.Government Controls: When a multinational firm does enter another nation, it often is subject to a variety of special controls, licenses, foreign exchange rules, and sanctions supplied by government.//
4.Economic Environment: Business I so thoroughly involved in the economic life of a nation that it would take an entire book to discuss the international economic environment of business.
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