Impact of Political, Economic, Social, Technological, and Legal Factors on Expanding Business in Germany

GLOBAL BUSINESS IN
CONTEXT
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Contents
Contents.............................................................................................................................2
INTRODUCTION...............................................................................................................3
DISCUSSION AND ANALYSIS.........................................................................................4
1.Political factor-.............................................................................................................4
2.Economical factor-......................................................................................................5
3.Social factor-...............................................................................................................6
4.Technological factor-...................................................................................................8
5.Legal factor:................................................................................................................9
6.Environmental factor-................................................................................................10
CONCLUSION.................................................................................................................11
REFERENCES................................................................................................................12
APPENDIX.........................................................................................................................1
5.Country profile.............................................................................................................1
6.Company profile-.........................................................................................................2
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INTRODUCTION
A global business is a company that operates facilities (such as factories and
distribution centres) in many countries around the world. This is different from an
international business, which sells products worldwide but has facilities only in its home
country. They will like to expand it till the year 2020. Report will highlight the political,
social, technological factor that can affect the company while expanding the market into
Germany. It will also highlight profile of Germany and company profile. Present study
will lay emphasis on political, Economic, social, technological, legal and environmental
aspects that will lay impact on decision making of firm.
MAIN BODY
Figure 1 Growth of manufacturing sector in Germany
(Source: Germany industry Growth, 2018)
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Figure 2 German economy
(Source: German economy shrinking, 2019)
DISCUSSION AND ANALYSIS
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In order to expand the business in Germany, the small and medium sized
manufacturing Alpha manufacturing Ltd. company can be impacted by various social,
legal and economic factors. The impact can include following:
1.Political factor-
It includes factors such as policies, regulations, tax rates given by government that
can affect the business. Alpha manufacturing Ltd. can also get affected by these factors
while expanding their market in Germany. Firm can face problem in expanding as the
country is facing political dis-balances. They have been converted from monarch
government to democratic republic which has caused chaos and riots in country
(Hamilton and Webster, 2018). So it can be quiet difficult for Alpha Manufacturing Ltd
manufacturing company to expand their market share in Germany. Also it has been
analysed that country is going through trade war with China in year 2019. Because of
this the country has been engaged in changing laws, rules and policies related to
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