International Business
Session 5
Understanding and Analyzing
International Markets
Political
Economic
Social/Cultural
Technological
P
E
S
T
PEEST, PESTEL, PESTLE, SLEPT,
STEEPLED, PEST LIED
(L)egal
(E)nvironmental
(Ecological/Physical)
(E)thical
(E)ducational
(D)emographic
Understanding and Analyzing
International Markets
Political
- includes (L)egal,
(E)nvironmental law/policy
Economic
- includes
(E)nvironmental climate and
weather
Social/Cultural
P
E
S
T
Key Variables
Politics
Political System
Legal System
Laws (affecting business)
National Trade Policies
Government Stability and Risk
Openness to FDI
Economics and Market Characteristics
Economic System
Per Capita GDP and Growth Rate
Purchasing Power
Inflation Rate
Social / Cultural and
Demographic
Dimensions of culture
Beliefs and Attitudes
Language
Religion
Population and Age Structure
Education
Urban/Rural Composition
Technical
Infrastructure
ICT level