Economic and Legal Environment - Assignment Example

Factors such as pricing, input costs, distribution, advertising costs, and government policies are some of the many factors which mostly impact the success of a new business in a new country. Physical and demographic environments such as population, distribution, and growth impact a new business in that it determines the capital invested in establishing the business and the quantity of production.

The economic environment goes a long way in analyzing the existing competitor and the availability of disposable income and patterns of expenditure (Hopkins 13). The cultural and social environment touches on a diverse range of factors. These factors which entail situations like education levels and literacy rates can detriment the success of a business in a foreign country.

The legal environment constitutes government guidelines that foresee how trade is operationalized on the day to day basis. This may include working hours which may vary from country to country depending on its governing legislation. Lastly, the political environment also to a great extent impacts business growth in a foreign country. Constant political turmoil scuttles security prospects which in the long run leads to the eventual failure of the business. Read More