Different Political, Legal, And Economic Systems And Technological Forces On International Environment

Globalization is the process by which the markets of different countries become integrated due to the exchange of goods, services, technology, and capital. Globalization depends on social, economic, and political factors, and continuously alters the way that the world works. All the vital components of the evolving global, political, economic and social institutions being examined seem to constantly converge and to perpetually intertwine during the day to day administration of global affairs. Diplomacy is employed to keep a measured balance between conflict and cooperation. The global guarantees of international law are placed in sharp contrast to the grim reality of human rights on daily basis and policy is dictated by the scales of political power and the urgent priorities of economic necessity. To understand how the globe functioned in the past and how it wishes to function in the future, we must study each factor separately and observe its inevitable interactivity with the other factors that occur. It is important to note that none of the dynamics can be given greater weight in comparison to the other crucial instrumentalities.

Political factors refer to the legal activities and political rules that may influence the business in some way. However, ASDA will continue to face many changing in the business for better or maybe worse when it comes to changes in government laws, for example, taxation and unemployment. The government is encouraging business to create or provide different jobs for the consumer this may affect or puts pressure on ASDA as they have to meet the all the government rules and regulation while continues to run the business according to the law (Worthington & Britton

Changes to political systems impact economic activities. First of all, if a political system such as the government is doing a poor job administering to its country, town, land, state, etc… other systems will get neglected. One example of such a system is trade. If the government is neglecting trade, trade will decline in that part of the world, and people will start to look for other places to live. Another example of how changes to political systems can impact economic activities is that if a power struggle is going on, the people of the area will no longer be protected. An example of this is

Businesses are affected by the economy and sometimes the economy can have a dramatic drop in countries causing issues for some business mainly due to 4 factors. These factors are inflation, Economic growth, Exchange rates and unemployment.

(3) Political and legal environment, factors related to policy and law that influence company’s operation.

These are all about how and to what extent a government mediates in the economy. This can incorporate – government policy, political steadiness or precariousness in foreign markets, foreign trade policy, tax policy, labor law, environmental law, trade restrictions and so on.

Economic factors – which include interest rates, economic growth, exchange rates, inflation and taxation changes (Nieman, G; 1998). The change the economy can have a major impact on the behaviour of the business. For example: inflation may cause a higher wage demand from employees (Herrigton, Kew & Kew; 2009).

that affect the way businesses operate. How a political trend affect business depends on the type of industry that we are looking at; since some legislations are only directed to a certain type of industry. Economic forces can also cause a crisis in an organization. Some factors such as the unemployment rate, interest rate health care costs and others can definitely affect the economic stability of any organization. Top management must consider political and economic trends that affect the specific

Economic factors include the operation in tourism and hospitality industry. Such factors can influence the expenses and revenues of the organisation that are working in tourism and hospitality industry. The prices of raw material, inflation rate and product prices also impact the industry. Exchange rates and rate of interest greatly influences the industry. The financial recessions all around the world has led to reduce the purchasing power of the tourists and customers. Thus, therefore, the overall revenues generated from tourism and hospitality industry impacts the financial

When it comes to political factors, the government stability, taxation policy, social welfare policies and trae regulations shoule be considered.

Political environment – The processes of national, regional and local governments, as well as various power groups that can affect the rules for doing business. This can include government intervention in particular industries, tax policies at all levels, government expenditures for certain causes, legislation aimed at implementing social policy, and regulation of various industries and trade practices.

Political economy is the study of production and trade and their links with custom, government and law. It is the study and use of how economic theory and methods influence and develop different social and economic systems, such as capitalism, socialism and communism, and it analyzes how public policy is created and implemented. Since various individuals and groups have different interests in how a country or economy is to develop, political economy as a discipline is a complex field, covering a broad array of potentially competing interests (Investopedia).

Economic factors are mainly “macroeconomic, affecting economy-wide phenomena” (Rothaermel 68). Things that influence economic factors are growth rates, level of employment, interest rates, price stability, and currency exchange rates. According to Charles Bovaird, “the total market capitalization of cryptocurrencies is continuously growing” (Bovaird, "Why The Cryptocurrency Market Has Reached A New

Factors that happen in the external environment are known as external factors or influences. These will affect the main internal functions of the business and possibly the objectives of the business and its strategies. The main factor that affects most business is the degree of competition - how fiercely other businesses compete with the products that another business makes. The other factors that can affect the business are:

The features of economic environment have direct relationship with economic activities .Income and wealth is the components of the economic environment.