Question

Organizations looking to conduct international business, must be especially cognizant of ________ for both domestic and international markets because of the dominantly uncontrollable nature of this factor in conducting global business.

Answer 1

Answer:

Political/legal forces

Explanation:

Organizations looking to conduct international business, must be especially cognizant of political/legal forces for both domestic and international markets because of the dominantly uncontrollable nature of this factor in conducting global business.

Political forces: This is a situation in which the decision of the government affect the business organzation. Government decision or law can either have a negative or positive impact on business organzations in a particular country.

Government might make law regarding tax increment for some organizations or give some organzations a tax incentive probably tax holiday.

The organzation with increase tax will be at a disadvantage while the organzation with tax holiday is at an advantage.

Legal Forces: This refers to laws of the country that affect the operations of a business organzation. The lawmakers of a country can make laws that will either benefit or harm a business organzation.

For example, when law makers makes law that only 500 bags of rice should be exported out the country in a day, this will limit rice producing companies in their export transactions.

Answer 2

Answer:

Political and Legal forces

Explanation:

While political forces are the arms of the government that is responsible for formulating the rules and laws that govern a country , legal forces are the rules and laws that the political forces introduced.

Examples are compliance to laws, gender policies ,tax incentives , minimum wages initiatives, trade restriction , fiscal policy among others.

It can have a very great impact on global business , which is the reason that PESTLE analysis is very important for a business before venturing into business activities in a new environment.