Global Strategy: Analysis of Political, Economic, Technological, and Legal Factors

This report analyzes the political, economic, technological, and legal factors that impact global business strategies. It provides examples of the UK, China, and the USA, and offers insights for business managers looking to invest in these countries.

GLOBAL STRATEGY
project

Table of Content
INTRODUCTION...........................................................................................................................3
ANALYSIS......................................................................................................................................3
Political factors:...........................................................................................................................4
Economic factors:........................................................................................................................5
Technological factors:.................................................................................................................6
Legal factors:...............................................................................................................................7
CONCLUSION................................................................................................................................8
REFERENCES..............................................................................................................................10

INTRODUCTION
Global strategy is an important element for Global skilful manager to consider an
investment abroad which includes assessing the environment on various factors political,
economic, legal and technological development of countries. This report explains the essential
factors needed to be kept in mind while analysing various factors regarding investment in abroad
countries of world and how global position of countries affect business strategies. Operation of
companies to reach long term sustainability depends on skills of business managers to choose
appropriate countries by researching on various paradigms. Environmental scanning is extremely
important for strategic business decisions implementation, incorporating detailed analysis on
various grounds regarding functioning structure of countries. This report elaborates the
explanation of political, economical, technological and legal factors with examples of high
advanced economies of world. UK, China, USA has been taken as examples to explain how
various paradigms affect companies working strategies and what are the high prioritized areas
for business managers to consider while planning their investments in these countries.
ANALYSIS
“A skilful global manager cannot develop suitable strategic plan or consider an investment
abroad without first assessing the environment- political, economic, legal and technological- in
which the company will operate” (Deresky, 2014 p.52).
The above statement is clearly aligned with the global role that business managers are
playing today. Global business managers have the role to build dynamic working culture in
companies where there is high functionality of operational structure for effective performance
(Kasemsap, K., 2020).Managers need to build competitive business decisions to advance in
highly competitive world and analyse various macro environmental factors which have high
influence on company's operations. The key factors which explains high importance of macro
environment can be understood as it is crucial to give high emphasis regrading country's political
and economic situations. Technological factors explain how much country enables companies to
grow with high advancement and modernization in their working standards. Legal and
environmental factors analyse the various arenas where business needs to develop strategies for
enhancing its long term stability within country. United Kingdom is one of the most prominent
country in world getting news headlines regarding Brexit as business are involved with exporting
goods in Europe market which has highly affected the global scenario. China economic scale has

largely faced decline due to the coronavirus repercussions on economy which has lead to large
setback in business scale shutting down bushiness all over country. USA is another prominent
country where news has been in headline lately due to strong economic position and high
increasing exports business within countries. Political, economic, technological and legal factors
are most important factors which determine the business ground decisions taken by companies to
spread business in abroad countries (Kotabe, 2020).
Political factors:
Political factors of UK, Brexit leaving the European union has largely impacted economy
on various levels which can be analysed on various key points which are increased trade barriers
and high taxes on goods exported to Europe. Country's political situation of exiting EU has
brought many highlights regarding its global business scenarios among relations with countries
where it operates exports. UK political scenario has greatly influenced business decisions of
companies in Europe and globally where managers analyse on stability and smooth functioning
of politics in countries where they look for investment. UK has seen large political instability due
to recent changing scenario which has brought world attention and influenced companies
decisions to expand in UK Market share (Turkeș, Topor, Căpușneanu and Constantin,
2020).UK's cities have been recognized globally as influential centre of finance and culture but
the changing political scenario has limited its economic growth extensively, businesses have
seen slowdown down due to political unrest. These factors explain UK political environment
forecast slow growth companies who plan to expand their business scale here.
Another example of analysis on political factors can be taken of USA, which is a strong
developed economy with large business growth opportunities for expansion on global
perspectives. Political factors of USA, after Donald Trump election win as president of country
in 2016 has largely impacted the political history of country and brought the democratic
functioning to an end. It has put an end to 8 years of democratic control of the white house in US
and affected migration along with major taxes on imports and exports of goods for businesses.
The increased complexity has largely become an area of concern for deciding investment
decisions by companies to start their business in USA, country has been globally recognized as
strong technological economy when it comes to other grounds for analysing growth opportunities
(McCormack and Novello,2020). USA increased tariff barriers has showcased a decline in
business allies with other export counties where country has long established history of trade.

However, country's position on world level is strong enough to enhance its productivity levels
economically globally and economic scale has been found on an increasing rate constantly.
There lies promising growth in market shares opportunities where business can enhance their
expansion to increased segments of customer base among new countries (Davidson, Hauskrecht,
and von Hagen,2020).
Economic factors:
Economic factors of china as an option for investment in companies there can be
understood through analysis on various factors by the current spread of coronavirus throughput
country. China has been recently facing the worst economic crisis in country history due to
sudden paradigm hit due to excessive loss of economic markets hit by virus spread. There is
complete shut down on markets in streets of country where people are unable to run their
business and stores due to lack of convince and trade getting highly affected. Economy is facing
high losses of liquidity and strong downfall in trade with export partners globally due to
coronavirus. There is increasing discomfort among local public due to lack of basic necessity
items in stores of cities, including bank failures to provide services effectively to citizens.
Central bank of country has become generous with provisions of liquidity in markets to public
for bringing back the slowing economy in shape again (Miranda-Agrippino, Nenova and
Rey,2020).The slow pace of economy due to large hit by coronavirus has impacted business on
large scale globally, making it hard for companies to invest in china business market. All sectors
of economy especially wholesale trade, manufacturing, retail and financial services which are the
backbone of country to keep employment rates in strong functional levels are deeply impacted.
People have been facing high economic losses and decreased employment due to virus outbreak
in Wuhan, epicentre city of this deadly disease where large numbers of death and cases of
patients has been recognised. China has faced high economic crisis die to amount of capital been
spent on medical of patents and hospitals construction all over country for coronavirus patients.
The Chinese economy contributes to around 20% of Global GDP which has been seeing large
impacts due to slowdown and employment scales have also been seeing continuous downfall.
Another example of economic factors analysis can be understood through study of UK
economy levels which has largely been affected in recent years due to Brexit decisions regarding
country leaving European Union. The total of economic trade in UK is more than 1.3 Trillion
dollars globally and almost half is with the European countries where increased taxes and tariff

barriers has impacted economy negatively. Economy has faced large slowdown with the exports
business hindering production success of many companies and declining business scale
worldwide. UK economic positions has been an important area of concern when it comes for
managers to decide for investment opportunities in country as long term sustanibility largely
impacts on economic situations (Bhattarai, and Mallick,2020).Research studies shown economy
of UK has been lately facing slowdown effects due to decisions to impart from European Union,
employment scale has slowed down in various sectors. Economy has seen large crunching effect
in recent years, where the economic progress graph has impacted whole regional growth to huge
scale losses. There is less promising growth when it comes to invest in UK companies or expand
business scale in this country by analysing economic paradigms (Gu, Tang, and Wu, 2020).
Technological factors:
Technological factors of china are highly strong for enabling companies to reach
productive growth along high profit margins, who look for investment opportunities in country.
China is highly technical developed country with strong research and development sciences
working in fields where country advances economic growth. Technology advancement in
operational stricture of country is highly curial factor for companies to attain advantage in highly
competitive business world. China is one of the highly developed economy in world and globally
known for high tech technology and modernization in companies, where management operations
gain high advantage with skilled employees having advanced knowledge, among other
competitors (Meyer and Hamilton, 2020).Companies while looking for investment decisions
have strong analysis on technological competition through multidisciplinary strategies. China has
built dynamic economy where technology focuses on building innovations in their working
standards, cross barriers of human mind. Companies have been able to operate working styles
with high transparency standards to minimize wastage of resources, and built encouraging
working structure in companies. The market of china is highly adaptive with technology usage,
path breaking innovations to make human life way easier and quick. Research methodology
studies have shown china is fasted economy in world where pace of technology is highly
growing continuously, and posses strong investment opportunities for future growth. Another
example of country having strong technological growth in world is United States, where the high
advanced strong economy has large potentialities of growth (Muller,2020).US economy is one of
the largest and biggest financial hub in global business environment where companies plan their

investments by building companies and start-ups. There is high innovation growth with advanced
competency in modernization of companies operating with high-tech computers and
transportation structure. American market share of companies growth is unmatched in pushing
boundaries of science and technology and being the global leader bys streamlining success,
enhancing contribution to world economy on whole. USA is the most lucrative economy with
high growth in technology field, research in alls sectors with emphasis on reaching business
goals with high success in profit margins. Global leaders have recognized USA economy as the
most dynamic collaborative market where there is scientific integrity and openness to enhance
optimistic growth (Ahmad, 2020).USA is recognized globally as the technology leader where
advanced research facilities has established strong modernization standards in people. It allows
companies to establish firm position among the market competitors globally with high tech fast
equipment’s in production and management. USA is one of the strongest economy in world
which has left other competitors behind globally by high advancement in communications,
medicine, research and all sectors of life.
Legal factors:
Legal factors are laws, regulations and ethical codes of conduct which companies are
required by government of economy in country to establish for smooth business functioning
levels. The legal environment of USA can be analysed on various key points which determine
country as a lucrative investment place for global business managers. USA focuses on building
strong legal stricture where there is direct operational structure for companies to get registered
with proper analysation of company goals and objectives. Corporate laws of company in USA
are expected to follow certain established norms for effective performance levels where there lies
high growth opportunities for them (Godin,2020).There are large paradigms of growth
opportunities for companies who look for investment and expansion in USA. Market share has
high growth potentialities where companies can regulate their structure with smooth legality of
norms and rules. The corporate legal rules of companies provide transparency in working
standards for quick strategies applications and high expansion of business scale. Dynamic
working styles with legal laws to administer growth of company with high ethical standards
enable leaders to reach set business goals with high profit margins. Legal factors play vital
importance for business managers to strategies their business decisions regarding expansion
investments. USA is one of the most advanced country where companies have delivered high

contribution to global GDP levels, high-tech advance growth has enabled companies to expand
their business for high productive growth (Hantzsche and Young,2020).
China has extensive legal factors which allow country to establish itself as one of the fastest
growing economy with the legal compliance, but the recent coronavirus hit has largely affected
legal operating standards of country. Employment scale has faced high crunching effect due to
outbreak, as whole living standards are highly affected of country. Cities are facing shutdowns of
stores and companies due to which legal factors are highly impacted resulting in less expansion
amongst people, lowered legal standards and safety standards implications etc. The activities of
companies have decreased due to slowdown of economy on whole, the entire justice system of
China is negatively getting affected due to virus spread (Jones and Bloomfield, 2020). The
coronavirus spread has made China to get disconnected from world on global level as people are
not able to engage in any of the activities that promote legal interactions and implications of law
in the country. Business managers analyse the legal factors as important element for expansion
into new countries for their business as different laws related to expansion and operation in
another country could have affected the manner in which the managers export or import their
products to other countries and other trading partners and patterns. Now after the company has
been isolated to trade with other countries, the legal aspects are proving to be highly troublesome
where the managers no longer understand how they are to trade and keep the economy running
after such impact of trading restrictions. These factors explain how companies will enable
business growth in new country and how it can enhance its performance levels along with legal
factors. These factors analyse china has less growth potentialities in market share until
coronavirus spread comes in control, as country is facing complete shutdown from business
globally. Legal factors of the country have greatly impacted businesses operating in cities such
as Wuhan in China which has been recognized as epicentre of coronavirus, is one of the biggest
city where large business has affected due to losses. People have been facing completely shut-
down in context of legal structure and services globally which has left city dark and separate
from world. These factors highlight that the country has been facing high legal crisis due to virus
spared which has largely impacted living standards in people and lead to economic crisis
(Choudhury,2020).
CONCLUSION
This report concludes global business manager has to do proper environmental scanning

by analysing macro environmental factors which are political, economical, legal, technological
and social factors. It concludes the explanation of their implementation and how their
repercussions can affect business of company for expansion into new countries. This report
explains the political scenario of UK, USA countries where the economy has been facing large
impacts due to political unrest developing there. It also elaborates the economical situations of
china and UK countries where economies have been facing large slowdowns due to coronavirus
spread and Brexit decision of UK. It analyses technological factors of china and USA countries,
where china has become the fastest growing economy die to large advance technology usage and
USA has left all countries behind when it comes to reach research breakthrough in advanced
technology and modernization. It analyses legal factors of USA and china, explaining the
importance for companies managers to expand their business in new countries.

REFERENCES
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