Geographic factors
Geographic factors are location, climate, terrain, waterways and natural resources. These factors influence business activity of a country. Very hot weather will limit the types of crops that can be grown, for example and a nation with many rivers or ocean seaports can easily ship products for foreign trade, but countries with few natural resources must depend on imports. Germany or Italy can export a lot of wine, because of the good graphic factors and locations.
Cultural factors
Cultural factors contain Language, family, religion, customs, traditions and food. Culture is the accepted behaviors, customs, and values of a society. Every culture has some interesting and important factors, which causes the reason why many or less visitors/ tourists come over and invest money in this country.
Economic factors
Economic factors are technology, education, inflation, exchange rate and infrastructure. There are key factors that affect a country’s level of economic development: Literacy Level (countries with better education systems usually provide more and better goods and services for their citizens), technology (automated production, distribution, and communications systems allow companies to create and deliver goods, services, and ideas quickly), and agricultural dependency (an economy that is largely involved in agriculture does not have the manufacturing base to provide citizens with great quantity and high quality of a product).
Political & Legal factors
Government system, political stability, trade barriers and business regulations are factors for Political and Legal. Governments regulate fair advertising and enforce contracts. They require safety inspections of foods and medications.