Technological factors
Firms need to analyze the technological environment of foreign markets. Well-developed communication infrastructure is an important factor to respond rapidly to customer's needs. International firms often rely on existing local distribution infrastructure in order to transport and distribute their products to consumers. This may have significant effect on costs, and in turn may influence price, as well as profits. Technology change is another dynamic
but ongoing phenomenon. A perfect example is the internet allows online contact with the firm's customers, suppliers, and partners and subsidiaries around the world, but it may also increases the opportunities for existing competitors and openings for new competitors. Therefore, technology provides both oppartunities and challenges. Pricing is a strategic choice, and it will be partially influenced by environmental factors. Taking into account elements of cost, the behavioral assumptions of self-interest lead firms to take advantage when environmental forces fluctuate (Williamson, 1975) However, some environmental factors, such as: economic and regulatory volatility, and competitive intensity, have been identified as moderating effects between strategy and performance (Cavusgil and Zou 1994; Myers 1997).
another dynamic