Political Risk

In order to enter market for targeted country, the company need to analyze the risks
that need to be faced from that country. Since Top Glove Corporation wants to enter India’s
market, they need to consider with the rick including political risk. India actually is a stable
democracy country so there is sincerely no hazard of the country failing. Despite the fact the
ruling party or leader adjustments, most companies related with legal guidelines and
regulations generally keep continuity, especially because of liberalization. Stress from the
public or unique interest group are from time to time responsible for political backtracking
that has affected overseas business. The choice to allow overseas funding in the retail area
in 2011 to 2012 took a convoluted path as an example. Russian Systema, Abu Dhabi’s
Etisalat, Norways’s Telenor and Japan’s NTT Docomo had been swept up in a prime telecom
scandal in 2010 which led to the cancellation of 122 spectrum licences. So, Top Glove
Corporation needed to think wisely to make branches at India.

The relations between the Democratic Alliance (NDA), Congress and nearby parties
continue to be stressful and as a result, constrain the development on the authorities’s
reform schedule as they want to negotiate support on issue by way of difficulty basis.
Furthermore, as the subsequent parliamentary elections might be held in 2019 the
competition events are less incentive to cooperate with the government which will put
together for the elections. Moreover, state elections that are held regularly may also have a
big effect on the relations among parties, however it is also crucial to be aware that the
parliament is not predicted to have a complete gridlock, as it become currently verified with
the passage of the national goods and offerings tax (GST) in 2016.

Bharatiya Janata Party or BJP’S affiliations with excessive rightwing parties and
groups along with the Rashtriya Swayamsevak Sangh (RSS) which might be assisting claims
to name India Hindu nation and have increasing have an effect on in sure BJP-ruled states,
are contributing to the growing sectarian and communal tensions. This poses a widespread
chance to the countrywide political balance. While, it’s miles vital that BJP does not longer
antagonize rightwing supporters given that they are a prime part of electoral base, there’s
additionally sturdy public pressure to guard and defend India’s status values of secularism,
diversity, tolerance and plurality. These two conflicting pressures may want to result in
social anxiety and also threaten to harm BJP’s enchantment to voters. In order to enter
India’s market, Top Glove Corporation need to consider with all of this political risk.