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Monday, August 8, 2022 8:45 PM

General question

General political factors


1. The Company should consider various political factors including government
policies and legislations that can affect the business operations:
a. consider taxes and duties relating to operations of the company
b. consider whether the government favors the industry in which the company
will operate
c. consider whether the government applies strict regulations in the industry in
which the company will operate
d. consider whether the company would affect import and exports of the
country which will affect the balance of payment and the company might
face:
i. Quota restrictions
ii. import bans
iii. facilitation for exports
iv. low tax rate incentive for exports
e. consider whether the company would cause reduction in unemployment to a
greater scale and we'll get government incentives that includes
i. tax holidays
ii. relaxation of other duties and taxes
iii. grants and other incentives
iv. subsidized loans
f. consider whether the company affects the environmental outlook and the
government might impose certain penalties on the activities of the company
g. consider whether the government policies have ensured
i. availability of skilled labor
ii. potential human development by government
iii. tax rebates and other incentives on human capital building by corporations
h. whether the government will be able to provide the necessary utilities to
operate at reasonable prices
i. consider the labor laws including health and safety requirements and age
restrictions of employees
j. consider international relations of the country with other countries which
might affect the remittances of profits earned by a company

2. Economic factors
a. Consider the stability in stock market which would ensure the
maximization and stabilization of wealth of shareholders
b. consider whether the raising of capital is easy and fruitful

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a. Consider the stability in stock market which would ensure the
maximization and stabilization of wealth of shareholders
b. consider whether the raising of capital is easy and fruitful
considering the investor confidence in the country
c. consider inflation (high inflation it would not only affect the
company's operations but will also affect the effectiveness
of consumable income of customers)
d. stable and reduced interest rates ensures ease of doing
business and managing the companies achievement of the
required rate of returns for different stakeholders
e. due to current unemployment availability of cheap labor
3. social aspects
a. consider whether the produced goods and marketing strategies would be in line with the
cultural dynamics of our society
b. the company considers what is permissible, prohibited, acceptable and undesirable in the
society while deciding different products and marketing pitch
c. the company carefully considers age gender and other demographic factors while deciding
that features and marketing lines including distribution channels
d. the company also considers the sensitivity of ethnic division of the society while conducting
business
e. the company also considers the level of education and wealth distribution of the society in
product design and pricing including marketing efforts

4. legal aspects
a. consider what business laws are applicable to the company's operations
b. Current and expected laws and regulations that will be promulgated in near future and will
affect the company's operations
c. regulations relating to license and permits to be considered

5. technological factors
a. consider whether the requisite technology for the operations of the company will be
available in the country
b. cost of technology must be considered against the benefits of it
c. discuss how emerging e-commerce technologies will affect the business of the company
d. consider how technology can be used as a strategy to gain competitive advantage
e. consider cyber security available in the country that protects organizational data
f. consider the speed and scale of technological disruption in the current business scenario and
expected business scenario

6. Ecological factors
a. consider whether the operations the company are environmentally effective or not
b. consider whether the company is compliant with code of environmental policy
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b. consider whether the company is compliant with code of environmental policy
c. consider the production and usage of output considering environmental congeniality

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