Since foreign environment is related to foreign countries,Firm in domestic economy may not be fully aware of factor constituting foreign environment.Foreign environment offer a number of opportunities but with some constraint . Hence a firm should carefully analyse the foreign environment.If a firm extend to operate in number of foreign market.The problem of analyzing foreign market become more complicated because the environment prevailing in one country may not give same result in second foreign market.Since most of the factors constituting foreign market are dynamic,a firm has to be careful in monitoring the changes in foreign environment.