Credit crunch and recession are great examples of external factors influencing the business. If the people are suffering from recession, they will not have money to spend money and this is how it affects the businesses. The current instability in Iraq is a good example of what may happen to businesses. In business it’s very important to understand, monitor and adapt to the political environment, because it crucially affects every business. Some of the very important factors are: Government stability effects businesses in a great range by competing with businesses to lower their costs, transparency is another important factor where anything the business does is revealed to the government and the government know exactly what they are up to.
How do they fair after the invasion that is foreign interest has risen in the recent past? The authors state that "As the Chindia Revolution spreads, the ranks of the poor gets smaller, not larger"(Meredith and Hoppough 396.) This is very important considering the hate major corporations are getting. The authors are trying to prove that globalization is not only good for the economy, but it is good for the people as well. The globalization of third world countries has become a hot-topic in many academic journals and well-respected magazines.
Political changes are changes that occur outside of the business and therefore out of the businesses control, say for instance a change in the law which could affect the business and it has to change the way it runs things to fulfil the requirements of the law. Economic change may occur due to exchange rates rising or decreasing. If the business imports goods from another country there could be taxes they have to pay or the exchange rates might not be profitable for the business. The
Timothy T. Riley SOC-100 October, 20, 2013 David Claerbaut Globalization: A Closer Look In today’s economy multinational corporations are outsourcing at an astounding rate. These conglomerates are making their mark through dominating the business arena through globalization and world trade. Companies like Ford motor company, General Motors, and Wal-Mart just to name a few are considered to be the major power players in the industry. Multinational companies are considered a threat to national independence to secure satisfactory working environments. The world’s fortune 500 companies controlled an astounding 70% of the trade market, and 80% of foreign investment, and 30% of the (GDP), gross domestic product.
The major factor that STX has to face is the competitors already in the market. This includes Easton, Bauer, CCM, and Warrior that already have established brand names. External Analysis External factors will be identified with the P.E.S.T model- Political, Economic, Social and Technological factors. With STX being an international company a political factor that could affect them is if governments put a restriction on what materials can be used to make the equipment. If this situation were to happen it could lead to the company having to use different materials in different countries.
Bacardi had its roots in Cuba, before moving its base to the Bahamas and has a very large presence in North America. Martini & Rossi originated in Italy and grew to become a pan-European entity. During the 1980s, the two companies entered into marketing and distribution alliances to take advantage of each others’ continental presences. These alliances were formalised by a merger in 1992. In the early 1990s, when India opened its alcoholic beverages
Securities activities can be risky, leading to enormous losses. Such losses could threaten the integrity of deposits. In turn, the Government insures deposits and could be required to pay large sums if depository institutions were to collapse as the result of securities losses. 4. Depository institutions are supposed to be managed to limit risk.
Economic globalization has attracted much debate throughout society today. So many tactics are being tested to try and raise economies in underdeveloped countries and this is just one. Some appose to the idea while others are extremely excited about it. There have been both pros and cons seen when it is put in action but overall the pros out way the cons. I predict that we will be seeing more and more economic globalization as our nation progresses and hopefully we can bring the underdeveloped countries with
Issues involved in resolving legal disputes could be customs, language, environmental, competition, misunderstandings, and even communications just to name a few. Any of these issues can create a large problem between international companies. An example of a legal dispute in the scenario is CadMex could make much more money than expected from the marketing of Gentura’s newly created agent and Gentura stops the production of the agent citing that the extra proceeds should be returned to them, not CadMex and breaking the contract. Practical considerations of taking legal actions against a foreign business partner are bringing in the attorneys used to create the initial contract. If an agreement cannot be made, another consideration is to proceed to international arbitration, which was the agreed upon method of dispute resolution between the two companies.
The fact that Wal-Mart is a company not even a country; and is China’s eighth largest trading partner; just makes us realize how much economic growth depends on businesses to produce more goods and services faster and more efficiently. According to many economists, continuous economic growth leads to greater prosperity for everyone, but because so many countries are trying to achieve the same exact thing, competition is harsh. These are some positive and negative perspectives that are caused by international trade. As you can see, the relationship between the three sources is that they are all based on trade. All around the world, different countries import and export goods to each other so they can benefit themselves with economic growth.