World Economic development

Dr.oec., Assistant professor Olga Bogdanova

Riga, 2020
General external environment

GEE has an impact on all the companies. The factors may be slightly
influenced, but are almost uncontrolled.
 General external environment
Factors of political environment:
 Political regime;
 State participation in political blocks;
 Groupings, parties, leaders;
 Coming changes (elections, considerations, constitutional changes);
 Political peculiarities of regions;
 Economic policy (privatization, subsidies, sector regulations);
 Regulation policy
Factors of legal environment:
International law (rights):
 Public (states’ relations)
 Private (between citizens, organizations, etc. of states)
General external environment
Factors of legal environment:
 State legal system’s harmonization with international law;
 Regulation of export/import operations;
 Regulation of entry/departure of natural persons;
 Property rights protection;
 Registration of financial operations;
 Commercial law;
 Business forms and commence;
 Labor law;
 Taxes regulations;
 Evaluation of state legal system stability.
General external environment
Factors of economic environment:
 GDP volume;
 Foreign trade;
 Investments;
 Resources (existence, volume, evaluation, prices, world demand);
 Infrastructure (post, telecommunications, transport, utilities;
 Development of economic sectors;
 Currency regulation.

As well as such tendencies:

 Economic activity (GDP growth, budget deficit, foreign trade deficit);
 Unemployment rate;
 Banking rates (for credits and deposits)
General external environment
Factors of demography:
 Number of inhabitants, age structure;
 Incomes;
 Rate of birth, etc.
Factors of cultural environment:
Cultural history, traditions, lifestyle.
Factors of scientific and technological environment:
Communications, innovations (innovative solutions)
Factors of ecological environment:
Globalization influence (resource exhaustion, ecological problems)