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THE POLITICAL ENVIRONMENT:

For example the pajama game discussed in global perspective is not unusual for multinational corporations. The pajama caper was a controversy arose over a US embargo forbidding US businesses to trade with Cuba. Wal-Mart was selling Cuban made pajamas in Canadian market. When Wal-Mart officials in US came to know about this, they ordered all offending Cuban pajama's as it was against US law. Canada was incensed with the obtrusion of US law on Canadian citizens. The Canadian citizen's felt that they should be able to buy Cuban-made pajama's if they wanted to. Wal-Mart was caught between a Canada-US foreign policy feud. Wal-Mart Canada was breaking US law if it continued to sell pajamas, and was subject to a million-dollar fine and possible imprisonment. However, if it did pull out pajamas from Canadian market it was subject to 1.2 million dollar fine under Canadian law. The ideal political climate for a multinational firm is stable, friendly environment. Unfortunately, that is never really the case, it's not always friendly and stable. Since foreign businesses are judged by standards as variable as there are nations, the friendliness and stability of the government in each country must be assessed as an ongoing business practice.
             STABILITY OF GOVERNMENT POLICIES.
             The most important of the political conditions that concern an international business is the stability or instability of the prevailing government policies. Political parties may change or get reelected but the main concern for MNCs is the continuity of the set rules or code of behavior regardless of the party in power. A change in the government does not always mean change in the level of political risks. In Italy the political parties have changed 50 times since the end of World War II but the business continues to go on as usual inspite of the political turmoil. In comparison is India, where the government has changed 51 times since 1945 but however much of the government policies remain hostile to foreign investments.


Essays Related to THE POLITICAL ENVIRONMENT:

1. External Environment

3.0 The External Environment 3.1 Task Environment Task environment are elements or groups that has a direct effect on the corporation, which in turn, also are affected by it [HUNG98]. 3.1.1 Stakeholders Government The bank is encouraged to liquidate assets and is sometimes forced to sell their products/properties at a low price to the government. ... Professional developers are also considered as competition for the Equitable PCI bank because they sell similar products. 3.2 Societal Environment Societal environment are forces that do not directly influence short-run activi...

  • Word Count: 1215
  • Approx Pages: 5
  • Has Bibliography
  • Grade Level: High School

2. Comparison between India and Greece

In many countries, such as India and Greece, the environment plays a major role in making a living. ... The environment of India has been essential to its production. ... In other areas of India such as the Indus Valley, changes in society and politics were not occurring. ... Therefore, the caste system was a positive thing for India, but it also had political and cultural consequences. ... In some cities such as Athens a push for a political democracy emerged. ...

  • Word Count: 1648
  • Approx Pages: 7
  • Grade Level: High School

3. Does the Environment Matter in Australia Political Debates?

Does the environment matter in Australian political debates? ... They have become prominent in Australian political debates. The political attention on the environment peaked during the late 1980s (Summers, Woodward &Parkin, 2002). ... I believe that the environment does matter in Australian political debates; it is not, however, seen as a huge priority. ... This view however is not held by all involved in Australian politics. ...

  • Word Count: 2910
  • Approx Pages: 12
  • Has Bibliography

4. The Foundation of Global Politics

Everyday humans all around the world are being affected by global politics. A question asked by many is what global politics is and how it started? Global politics is the world affairs on the basis of international paradigm (Global politics, Palgrave Macmillan page 1). ... The modern state has long been viewed as the most substantial factor in today's International political discussions (Global politics, Palgrave Macmillan page 112). ... The state has to create a secure environment for its people and for that they need to form an army to protect their territory. ...

  • Word Count: 925
  • Approx Pages: 4
  • Grade Level: Undergraduate

5. The marketing environment

These include the: economic, cultural, legal, political, social environments and technological. ... The social forces that affect the microenvironment as a whole in every step of the way, are a combination of demographic, economic, natural, technological, political & cultural forces. 2. Explain how changes in the demographic and economic environment affect marketing decisions. ... The economics environment has created two main markets. ... Identify the major trends in the firm's natural and technological environments The most important trend of the natural environment factor is the g...

  • Word Count: 950
  • Approx Pages: 4
  • Grade Level: Undergraduate

6. The Marketing Environment

There are three key elements to the marketing environment which are the internal environment, the microenvironment and the macro environment. ... Macro Environment The macro environment is less controllable. ... These factors include the economic factors; demographics; legal, political, and social conditions; technological changes; and natural forces. ... Factors of Macro Environment Political Factors The political environment revolves around the current government in a particular country in which we manufacture or trade, and also laws/legislation operate within your home market as ...

  • Word Count: 2120
  • Approx Pages: 8
  • Has Bibliography
  • Grade Level: Undergraduate

7. Consumer information

Schattschneider claims "At the root of all politics is the universal language of conflict." What he means is that politics is a competition for attention. ... In the discipline of Political Science, many scholars have attempted to quantify and explain the "rules" of political agendas. ... Walter Lippman speaks of a "pseudo-environment", that is, a world that people imagine based solely upon information received from second-hand sources. ... The pseudo-environment is perhaps the most disturbing concept of political analysis because it is easily constructed, and can be formed so that the opi...

  • Word Count: 1633
  • Approx Pages: 7
  • Has Bibliography
  • Grade Level: Undergraduate

8. Political Party Reforms for a Stronger Democracy

Political Party Reforms for A Stronger Democracy Political Science fraternity all over the world has been discussing innumerable aspects of party systems and related issues for the last several years. ... In the 1998 edition the volume "Political Parties of the World" the editors have come out with a largely acceptable definition of a political party. It says that a political party means "the organisation seeking to obtain or retain direct political power over the process of government at some level, usually through the ballot box". ... It said, "What would democracy look like if t...

  • Word Count: 3980
  • Approx Pages: 16
  • Grade Level: Undergraduate

9. Managing in a global environment

Managing in a Global Environment (Chapter 4) The global market place in which managers participate is very complex and competitive. As trade barriers, geographic boundaries and political borders come down the opportunities for many organisations are increasing. ... Factors to consider in a foreign environment (a) Legal-political environment - some nations have a history of unstable government whilst others have slowly changing and stable government. ... Managers must also be aware of the different legal environment between countries (b) Economic environment - managers must be awar...

  • Word Count: 826
  • Approx Pages: 3
  • Grade Level: Undergraduate

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