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Pages: 17 (4120 mots) Publié le: 5 février 2011
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|Paul Case |
| |International strategy

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Summary

I. PEST 4

A. Political 4

B. Economic 5

C. Social 6

D. Technological 8

E. Environemental 8

F. Legal 9

II. Task Environment 11

A. Suppliers 11

B. Distributors 12

C. Customers 12

D.Competitors 13

E. Partners 14

III. Organisation’s resources and capabilities 16

A. Opportunities 16

B. Threats 16

C. Strengths 17

D. Weaknesses 17

Introduction

PEST

Political

The political influence generally includes the stability of the government, policy of taxation, regulations of the foreign trade and social welfare policies.  In thispaper we would look into how the international and global business should adopt and fit in into the political arena, particularly in the country that holds a capitalist political ideology, and in the imposition of tax law.

The capitalist is descriptive of the country sparing some parts of its economic activity to local citizens.  Foreign-owned firms, in this regard, generously offer atempting target for local politicians, and such that, firms already operating in a foreign country braces an ongoing public relations problems as they may be harassed by the local populace.

With the fact that majority of foreign firms are wealthier, plausible cases of exploitations can surmount and indirectly found somewhere, which in turn, are counteracted in a means of a façade, like forinstance, international firms promoting the locals to a managerial positions.  Another factor that has an influence politically are the imposition of local tax law that is applicable and are mandated by individual countries to foreign companies.  In some countries, especially the corrupt countries, there are cases, in which international operations are asked more than their normal tax payments. Animport duty like in Saudi Arabia, for example, is a local tax not levied on local firms or companies but is being levied to international firms.  Consequently, the income taxes levied to the international and global business operations have a direct affect on the businesses net profitability, resulting to changes in financial planning, new investments, dividend payouts, and similar factors. Similarly, the sales and excise taxes required on final products affect prices. 

Simply, stated the political ideology trend interrelates with both international and local barriers, such that political philosophies of the leaders of a particular country are highly influenced from which the political leader has been a part of.  Additionally, the political attitudes and philosophies held by apolitical leader mirrors partly in the sociological and educational factor in the given country.

Economic

Generally, economic analysis encompasses the particular country’s business cycles, GNP trends, interest rates, money supply, inflation rate, unemployment rate and the disposable income.  The importance of determining resources would likely predict the competitiveness of acountry as stressed by the conventional trade theories.  Consequently, it prompts for international firms to ensure that adequate resources that are of sufficient quality can be accessible and the availability of the said resources are present. 

Thus, access to global resource base is a key factor influencing international production.  For both international and global business, labor quality...
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