Grasping the level of government intervention

sultanafarjana

Level of Government intervention: The Government is both a controlling, encouraging, sponsoring factor and a provider of public services for businesses. in these areas will help businesses operate smoothly. Law: Trade laws and policies create a sustainable and equitable business environment. Businesses that understand and comply with the law will have the opportunity to take advantage of the benefits that legal provisions bring, as well as prepare timely countermeasures. Besides, businesses also often analyze aspects such as: national development policy, tax policy, level of law enforcement, quality of public services, corruption, etc. pest analysis Legal and political factors - Political Economic factors – Economic.


Economic factors will be related to activities such as trade cycles, markets, currency Email Data fluctuations, etc. Economic factors will directly impact the business's operations through the following aspects. : GDP economic growth: higher national income growth can boost demand for a company's products. A high-growth economy creates more opportunities for businesses than a declining economy. Monetary policy and exchange rates: A strong currency can make exports more difficult because it increases foreign exchange rates, affecting the trade balance. The trade balance also partly affects foreign investment. Market orientation: market orientation towards capitalism or socialism in each country will force businesses to move in that direction. Interest rates and interest rate trends: high interest rates can hinder investment because businesses have to spend more on borrowing capital.



In addition, high interest rates make consumers tend to save more than spend, so consumer demand decreases. Inflation: Inflation can increase workers' demand for wages, thereby increasing costs for businesses. Too high inflation will discourage savings and create great risks for investment, while deflation will cause the economy to stagnate. Economic development level: high economic development level creates conditions for businesses to develop and vice versa, backward economic development level makes it difficult for businesses to survive. Infrastructure and natural resources: This is the foundation for business inputs. High infrastructure helps businesses develop smoothly. Abundant natural resources provide raw materials for a number of key industries. pest method Economic factors – Economic Social factors – Sociological Each country and territory has unique cultural values ​​and social factors. These factors are characteristics of consumers in those regions.