Just for the note; You can find out how much the government bought the last 5-10 times, who it bought from and how much it paid. If you try to look for such information elsewhere as legal factors in business, it will be very hectic for you. The political nuances of a country are one of the most important challenges in international trade. Political leaders often make decisions that affect labor law, education, transportation, and taxes, which in turn affect businesses. It`s not easy to overcome the political challenges of multiple countries, so it`s important to make sure it`s ready for globalization before you grow your business. Conducting a macro-environmental analysis, a good example of how political factors have influenced a company, can be associated with Nike. Nike is a globally recognized sportswear, shoes, accessories and sports equipment. Nike has been very lucky because the U.S. government has formulated such guidelines that will promote business growth. The company benefits from a stable currency and low interest rate conditions, as well as highly competitive tax provisions that help the company drive growth.
The U.S. government has taken initiatives regarding transparency in the global value chain, from which Nike has benefited greatly. However, Nike is facing tough times in its outsourced manufacturers in other regions such as Indonesia, Thailand and Vietnam, where political unrest is on the rise. Governments often seek to create value directly by producing public goods that have two identifying factors: For a detailed analysis of laws affecting businesses, business owners and new entrepreneurs can refer to the official website of the U.S. government or the U.S. state trade law website. If you want to analyze the situation a company is in, environmental analysis is a good place to start. This combines a number of different techniques – PESTLE analysis is one of them – to identify and evaluate the different external factors that influence a company.
Each business is taxable based on its location and income. Tax offences can end the future of the company. Therefore, it is another crucial legal factor that affects the economy. Tax standards vary from state to state. Some states have more flexible tax rules than others. On the tax return, the owner receives an employer identification number. A business owner`s tax obligations include the following taxes. Knowledge of global politics is also important because of international competition from foreign companies. However, the challenges of global politics can offer many opportunities.
An effective trade strategy takes into account both globalization and national factors. Legal factors are external factors related to how the law affects the way companies work and customer behavior. The political environment can affect business organizations in several ways. This could add a risk factor and result in a significant loss. They need to understand that political factors have the power to change outcomes. It can also have an impact on government policies at the local and federal levels. Companies must be prepared to deal with the local and international results of the policy. Political trends can affect any level of society, be it individuals, families or organizations such as small businesses. Policy trends set by government agencies and executives can affect the legal framework in which small businesses operate, market conditions that affect consumer behavior, and the level of support offered to small businesses by government.
Understanding political trends at the national and local levels is an essential part of planning and strategizing for your small business. If you want to learn more about how globalization and political activity affect your business, consider taking an online course like Global Business. This way, you can prepare for the reality of globalization and the impact of political decisions on your business. Labor law — Labor law, also known as lab(u)r law, dictates how employees of companies should be treated. Minimum wage laws can limit the various employment opportunities a company can offer, child labor laws can affect how close-knit home-based businesses operate in third world countries, and dismissal laws can make it fire employees (for whatever reason, perhaps unproductive) a little more difficult. In the business environment, these are the reasons why an understanding of the law is required for an entrepreneur. Certain factors create links in many ways. Some examples: Some companies behave unfairly towards their consumers. For this reason, most countries have consumer protection laws aimed at ensuring their protection. Here are some examples; The political environment is perhaps one of the least predictable elements of the business environment. A cyclical political environment develops as democratic governments seek re-election every few years.