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International Business Assignment - Role of External Factors

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Added on  2020-01-07

International Business Assignment - Role of External Factors

   Added on 2020-01-07

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International Business Assignment - Role of External Factors_1
Table of ContentsINTRODUCTION ...............................................................................................................................3TASK 4.................................................................................................................................................3CONCLUSION:...................................................................................................................................8REFERENCES.....................................................................................................................................8
International Business Assignment - Role of External Factors_2
INTRODUCTION International trade is a broader form of business in which one company of one region, doesthe business with the another entity in the other nation (Krugman, 2008). This can promote theglobal business and by this the relationships among the nations can be improved. It is a welfare ofthe husbandries of the regions. The report is based on PESTEL analysis of the entity while doing the trade at a global level. As these are the most prime tools which can help the company in assessingand evaluating all the external elements of a business. Next PLC is a retail business operator, it isoperating the trade activities in various nations. The entity is functioning major in clothing andfootwear sectors. The purpose of the study is to identify the role of the external factors ininternational business. TASK 4International laws are very important as these helpful in managing the national resourcesalso. There are some external factors which can have influence on the various trade policies whichare having an influence on national business (Hummels, 2007). A PEST analysis can be helpful inassessing all those factors which are related wit the external elements of the trade terms. Thepolitical issues are those problems which can create the situation the tax policies and revenuemethods. Economic factors can be related with the demand and supply issues of the products andservices. If the nation is doing the trade in the other nations then it has to take care of all thosepolicies which are influencing domestic plans (Keller and Yeaple, 2009). The another element issocial factors to carry a business it is important to take care of the social issues as it the society inwhich the business is to be operated and managed. If the goods' and services are to be provided asper the demand and need of the society then it can be beneficial for the company. The anotherelement is technical the technology is emerging day by day and for the success of the business it isimportant to pay attention on the latest trends and updates so that the trade can be done in smootherway. This analysis in helpful for the broader and other dimensions also which are elated with theglobal business. By using this concept the investing company can have a knowledge of all theexternal factors which are having a very vital role in managing all the operations related with theinternational trade. In below mentioned way the PESTEL analysis in the context of national andother dimension broader scope is explained as under:Political: These factors decide the limit at which the government can use its governmentalpowers to effect the international trade (Hummels, 2007). In it the government imposevarious taxes and duties on the trade so that the business can be done properly and thebalance between the fiscal policy and tariff rates can be balanced. Political factors can be
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related with the governmental rules and regulations which can make the influence on thenational and international trade. Ton the trade in region can be very important for thecompany as it is the duty of the management of the entity to pay attention on all the aspectwhich are related with the regulatory and revenue department. The governing authoritiesavail the taxes because they have to collet the fund then use it in various governmentalactivities so that the fund of the society can be utilized for it. When the trade is done withthe nations outside the local limits then it can affect the monetary and regulatory policy ofboth the nations (Krugman, 2008). The business owners of both countries have to takepermission from their government so that all the business activities can be operated througha proper way. Every country can have its own governmental policies which can haveinfluence on it. So the regulatory authorities have made various policies so that it can beeasy and convenient for the other business entities to operate the trade outside the nation.Thus the impact of politicians and political authorities is having very vital role in doing thebusiness globally. Economic: These elements pay attention on the factors which can affect the company and itsbusiness which are having a significance role in the economy (Helpman, Melitz andRubinstein, 2007). The husbandry can affect the price Production, supply and interest ratesrelated with the trade in a nation. It is also having a influence on the foreign directinvestment polices. There are various economic situations which can be held liable for thefluctuations in the husbandry. The major factors which can be occur in the economy are thedemand and supply issues related with the particular goods and services. Next PLC is acompany which is having the business in various nations. It is major operating I the field ofclothing, footwear and other home appliances. The company is doing the business activitiesin retail segment. While doing the trade with the other nations it has to pay attention on the economic factors of thatparticular country and its home country (Hanushek and et.al. 2008). By this it can be able to get aproper and vague idea that the demand of the goods and services which are to be provided by theentity is high or low in the other nation. This cab leads the company in assessing the estimates salesof it. Thus, the economic analyses is having very vital role in getting the proper information abutthe economic fluctuations in a economy. Apart from this the recession and inflation situations arealso great economic factors which can affect the business of the company while doing the tradeinternationally. Social: These factors include the cultural trends, demographics and population. This caninclude the buying trends and demanding situations. Thus, in it the factors which are having
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