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Introduction A business does not function in a vacuum. It has to act and react to what happens outside the factory and office walls. These factors that happen outside the business are known as external factors or influences. These will affect the main internal functions of the business and possibly the objectives of the business and its strategies. Main Factors The main factor that affects most business is the degree of competition - how fiercely other businesses compete with the products that another business makes. The other factors that can affect the business are: * Social - how consumers, households and communities behave and their beliefs. For instance, changes in attitude towards health, or a greater number of pensioners in a population. * Legal - the way in which legislation in society affects the business. E.g. changes in employment laws on working hours. * Economic - how the economy affects a business in terms of taxation, government spending, general demand, interest rates, exchange rates and European and global economic factors. * Political - how changes in government policy might affect the business e.g. a decision to subsidise building new houses in an area could be good for a local brick works. * Technological - how the rapid pace of change in production processes and product innovation affect a business. * Ethical - what is regarded as morally right or wrong for a business to do. For instance should it trade with countries which have a poor record on human rights. Changing External Environment Markets are changing all the time. It does depend on the type of product the business produces, however a business needs to react or lose customers. Some of the main reasons why markets change rapidly: * Customers develop new needs and wants. * New competitors enter a market. * New technologies mean that new products can be made. * A world or countrywide event happens e.g. Gulf War or foot and mouth disease. * Government introduces new legislation e.g. increases minimum wage. Introduction A business does not function in a vacuum. It has to act and react to what happens outside the factory and office walls. These factors that happen outside the business are known as external factors or influences. These will affect the main internal functions of the business and possibly the objectives of the business and its strategies. Main FactorsThe main factor that affects most business is the degree of competition - how fiercely other businesses compete with the products that another business makes. The other factors that can affect the business are: * Social - how consumers, households and communities behave and their beliefs. For instance, changes in attitude towards health, or a greater number of pensioners in a population. * Legal - the way in which legislation in society affects the business. E.g. changes in employment laws on working hours. * Economic - how the economy affects a business in terms of taxation, government spending, general demand, interest rates, exchange rates and European and global economic factors. * Political - how changes in government policy might affect the business e.g. a decision to subsidise building new houses in an area could be good for a local brick works. * Technological - how the rapid pace of change in production processes and product innovation affect a business. * Ethical - what is regarded as morally right or wrong for a business to do. For instance should it trade with countries which have a poor record on human rights. Changing External Environment Markets are changing all the time. It does depend on the type of product the business produces, however a business needs to react or lose customers. Some of the main reasons why markets change rapidly: * Customers develop new needs and wants. * New competitors enter a market. * New technologies mean that new products can be made. * A world or countrywide event happens e.g. Gulf War or foot and mouth disease. * Government introduces new legislation e.g. increases minimum wage.

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Are there industries that will be immune to changes in the global environment and as a consequence will be influenced primarily by their domestic external environment?

Not really, there is not any industry in today's world that is not affected by the changes in the global environment. Since each economy is linked internationally and no country has all the factors of production at its disposal, so each industry is affected by the changes in the global environment. The gambling and pornography industries remain 2 industries immune to global industrial cycles.


What are the global warming targets of Kazakhstan after the 2015 Paris Climate Talks?

Kazakhstan has a 15% target to cut emissions by 2030 compared with 1990. It has large supplies of fossil fuels, but has had a carbon trading system since 2013.


What is global economic environment?

The global economic environment refers to the overall conditions and factors that affect economic activity on a worldwide scale. This includes factors such as international trade, exchange rates, political stability, global economic growth, and financial markets. Understanding the global economic environment is crucial for businesses, policymakers, and investors in making informed decisions.


The combination of global and multi-Domestic strategies is called as?

The combination of global and multi-domestic strategies is called a transnational strategy. This approach involves integrating global operations while also responding to local market differences and needs. It seeks to balance the standardization of products and services globally with the customization required by local markets.


Is Nat interested in global warming?

Of course he's interested in Global Warming he's totally interested in the environment

Related Questions

Are there industries that will be immune to changes in the global environment and as a consequence will be influenced primarily by their domestic external environment?

Not really, there is not any industry in today's world that is not affected by the changes in the global environment. Since each economy is linked internationally and no country has all the factors of production at its disposal, so each industry is affected by the changes in the global environment. The gambling and pornography industries remain 2 industries immune to global industrial cycles.


Why did kazakhstan join the UN?

Kazakhstan joined the UN because they wanted to be seen as an independent, sovereign nation and wanted to participate in global affairs.


What is the external conflict in the interlopers?

Global warming


What are the 8 environmental elements of a firm?

The 8 environmental elements of a firm are: competitive environment, economic environment, social environment, political environment, regulatory environment, technological environment, legal environment, and global environment. These elements impact a firm's operations, strategies, and overall business performance. Understanding these factors is crucial for a firm to effectively navigate its external environment.


Hoe does environment affect the organization?

The environment can impact an organization by influencing its resources, market dynamics, and regulatory requirements. Changes in the external environment, such as shifts in consumer preferences or new technology advancements, can create opportunities or threats that organizations must adapt to in order to stay competitive and successful. Organizations that are mindful of the external environment can proactively adjust their strategies to leverage opportunities and mitigate risks.


What is the Characteristics that associate domestic business and international business with a global company?

what are the characteristics of domestic trading


What is the other name of global variables?

Another name of global variable is "EXTERNAL VARIABLES".


What are the stages of globalisation?

Domestic, International, Multinational and Global.


What are the external and internal factors influencing foreign policy in Zimbabwe?

External factors influencing foreign policy in Zimbabwe include international alliances, global economic conditions, and regional stability. Internally, factors such as domestic politics, public opinion, and economic challenges can also impact foreign policy decisions.


What is the difference between domestic politics and global politics?

Domestic politics refers to political activities within a specific country, involving policies and decisions that impact that nation. Global politics, on the other hand, involves interactions and relationships between countries on an international scale, covering issues like diplomacy, trade, and security. Domestic politics focus on internal governance, while global politics address relationships and dynamics between countries.


What size organization is better to compete in global environment?

A global organization


What are the global warming targets of Kazakhstan after the 2015 Paris Climate Talks?

Kazakhstan has a 15% target to cut emissions by 2030 compared with 1990. It has large supplies of fossil fuels, but has had a carbon trading system since 2013.