International Political Environment Essay

Political: this inturns the legislation and government rules of the country that may influence and pose as a threat to the business,

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

As previously identified, there are also “non-legal/extra-governmental” political risks which could bring unexpected upheaval to foreign firms. Macro political risks such as the threat of violence, corruption, war or military coup, political instability and terrorism are all direct threats to foreign investors.

1. Should he pay the “commission” and, if so, to whom? Explain your reasoning. If he pays, how should he handle the situation with the sales manager and the vice president of sales? In your answer, include a discussion of the arguments in favor of paying and the arguments in favor of not paying.

Political environment- Political environment refers to the relationship between the business and the government and how they are inter-related. Government decisions will influence the activities done in the business. In regarding to, the fresh produce delivery company, there will be many set of rules to abide which are enacted by the government.

All countries in the world have various political environment and regimes. Political systems differ in terms of the governance, power and the rule of law. A political regime can be defined as structures, activities and processes by which given countries in the world govern themselves. Political systems can be based on either collectivism or individualism. It is essential for business to look at a country’s political environment as a vital criterion in venturing or expanding the business or company to that country. This is because political systems differ and each has its own form of governance that impacts a business in terms of its growth. International companies carry out international manufacture and activity in that they

2. How would leveraging capabilities with respect to the Indonesian market differ between an Australian/New Zealand producer of computer software and an Australian/New Zealand manufacturer of automotive parts?

The overall political forces have more positive impact on this industry, Take full advantage of environmental law and political stability to boost business. Organizations need to be able to respond to current and anticipated future legislation changes to adjust its marketing plan. Such as which country to register the business.

Global Politics The study of international or rather global politics, seeks to provide an account of politics in the broadest domain. The domain of international politics in the twenty-first century is characterised by the increasing number of actors pursuing common and personal interests. It is largely due to the globalised, interdependent nature of the current international political environment that the concepts of sovereignty and power deserve further evaluation.

This essay will respond to the central problem facing global environmental politics insofar as the resolution of such problems as global warming, the hole in the ozone layer, the loss of biodiversity, and many other transnational environmental issues rests upon some sort of consensus among extremely diverse groups. These are considered global problems not only because of their apocalyptic potential but they are also unique in that the “terrain where they occur [is] property that could be claimed by everyone or by no one. They [are] global also in that no nation [is] fortunate enough to be insulated from their effects”(Guha 139). From this worrisome background, the starting point of this essay begins with the question that Ramachandra Guha

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.

Krom Bop-A-Lee’s experience in Bombay, India is undoubtedly a common one for those from First World countries unaccustomed to the relatively poor working conditions present in many parts of the world. As Westerners, many luxuries are taken for granted, and the absence of these luxuries can have a profound impact on one’s moral and ethical foundation.

The level of internationalisation around the globe has grown throughout the years, with advanced technologies the ease and ability to work with foreign countries has also grown. However, firms do not simply interact with each other with no outside party involvement; the government can be seen to play a large role in conducting international business. Governments continuously have the responsibility to act in the manner that they believe is best for their nation; this includes decisions regarding protectionism, which may serve to aid domestic industries but simultaneously hinder international business. It can be seen that governments do not always act in their nation’s best interest and are corrupt which can serve to increase the risks and costs of entering an international business environment. While these are examples in which the government makes international business difficult it can also be seen that the presence of a government is instrumental in creating international business effectiveness, whether this be through their legal system or from trade agreements. This makes the role the government plays paradoxical; as their involvement generally increases the risks and costs of firms seeking to internationalise, whilst simultaneously playing a significant role in creating international business effectiveness.

Political environment is significant to do business in other countries. There are different factors of political environment. These factors can influence the government decision making and other activities. For foreign investors every country set some rules and regulations. Investor need to maintain these rules and regulation to do business on certain country. Political factors can influence the government to change these regulations. So investors need to know the regulations and get the proper knowledge about political environment.

International business is not possible when the government of the home and host countries are not mutually interested and benefited in the trade. MNC’s always strive to build better relationship with the home and host ruling government.