China is an emerging economy that offers lot of market opportunities for foreign investment. Political and Legal factors International trade is usually impacted by a country's legal and political landscape. This is a non-market factor but it can still greatly impact a business. Political factors give rise to a number of marketing implications. Finally, the reciprocal impact of trade on do-mestic politics and the international political system is important. 2. 1 Introduction 2 2 Demography 3-4 3 Technology 4-6 4 Investment 6-7 5 Energy and Other Natural Resources 7-8 6 Conclusion 9 7 Bibliography 10 Introduction 1 International trade is the exchange of capital, goods, and services … Political factors: Various political factors affect the international factors. BUSINESS ENVIRONMENT IN CHINA: ECONOMIC, POLITICAL, AND CULTURAL FACTORS . Capital controls on any foreign currency would often work to increase its exchange rates. While structural political factors such as elections, referenda, treaty renewals, etc. Legal environments of countries vary that also affect dispute resolution situations and contractual relationships. Particulars Page No. In this lesson, we'll discuss political and legal factors pertinent to global markets. are very big factors in the business environment, there are other ways in which political issues can impact companies’ marketing operations, and those are the reactions of the people that are linked to their political identities. institutions has been important. Political-Legal Environment. Political decisions have also strong influence on social and cultural environment in a … International law serves to increase international trade, investment and promote prosperity. Georgine K. Fogel, Lawrence Technological University . For an international business to be successful, there is a need to assess the balance existing between rules, local policies, and specific regulations that may positively or negatively impact the performance of any business. affects the working of an international business firm. Populist Political Constraints. International trade and state efforts to liberalize or restrict trade generate very contentious politics. Others argue that the quality of a Ascountry’s political and economic institutions can be a key source of comparative advantage. These include the following: ... international trade law commission set up with the intent to provide a uniform commercial code for the whole world, particularly international sales and payments, commercial arbitration and shipping legislation. If the rush to free trade is sustained, will its impact be benign or malign? Political factors such as changes in tax rates, policies and actions of government, political stability of country, foreign trade regulations etc. impediment to entry into trade. 10. Economical factor in International Markets. Trade creates winners and losers at the individual level, firm level, industry level, national level, and even regional level. Trade can lead to technological AYUSH MADHEPURAM - 1523512 YASH JAIN - 1523550 FACTORS AFFECTING INTERNATIONAL TRADE Introduction to Global Business CIA INDEX Sr. No. INTRODUCTION One of the most salient changes in the world economy since 1980 has been the This section also covers feedback effects from trade which, in turn, have an impact on the fundamental economic factors shaping trade. Political factors affecting business are closely tied to legal factors affecting business.Stable political environment creates confidence of citizens and companies investing or planning to invest in particular country. 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