―ИҚтисодиёт‖ факультети

Political factors affecting international markets 
Global markets are so complicated that‘s why in order to maintain stabile and 
continuous growth rates companies must take into account several factors affecting their 
business. 
These factors can be divided into two groups in terms of participating subjects: 
- 
Internal factors; 
- 
External factors. 
The internal business environment comprises of factors within the company which 
impact the success and approach of operations. It is important to recognize potential 
opportunities and threats outside company operations. However, managing the strengths of 
internal operations is the key to business success. 
Conversely, external factors are related with matters outside the company and they 
can be categorized as shown below:
- 
Economy; 
- 
Finance; 
- 
Laws and political environment; 
- 
Infrastructure; 
- 
Weather; 
- 
Customer base and so on. 
One of the foremost factor among them is , of course, laws and political environment 
in the country, which illustrates political factors of trade. There are many ways through 
which we can see impacts of political issues in global trade operations: 
1. Government changes in their rules and regulations could have an impact on trade. 
2. The political condition of a country affects its commercial setting. The economic 
environment affects the business presentation. 
3. The absence of political stability affects trade operations, most especially for those 
companies who operate internationally. 
4. Obtaining political risk insurance is a method to manage political risk. Firms that 
have international operations uses this kind of protection to decrease exposure to risk. 
Companies should check their political environment. The changes in political factors 
can impact company strategies because of these reasons: 
- 
government view business as a crucial vehicle for social improvement. 
- 
the government is responsible for protecting the public interest. 
- 
a stable political system can affect the petition of a particular local market. 
- 
governments pass legislations, that can also influence the relationship between the 
firm and the suppliers, customers, and other companies. 
- 
the government is the primary consumer of products and services. 
- 
government actions impact the economic environment. 
253
2018-yil 21-noyabrdagi PQ-4022-sonli ―Raqamli iqtisodiyotni rivojlantirish maqsadida 
raqamli infratuzilmani yanada modernizatsiya qilish chora-tadbirlari to‘grisida‖gi O‘zbekiston 
Respublikasi Prezidenti qarori. 

---

404 
Recently,the USA imposed a 7 year ban against ZTE corporation, the fourth largest 
smartphonemaker in the USA, because of violated terms of a deal after pleading guilty to 
shipping US technology to Iran.
ZTE spent $2.34 billion on more than 200 US suppliers last year, acquiring 
components and software for phones and networking gear. Its largest suppliers are 
Qualcomm, Broadcom, Intel, Xilinx, SanDisk and Acacia Communications -- ZTE paid 
each company at least $100 million. As consequence of the new law , ZTE has declared to 
cease its major activities, which has a great consequences in its trade operations with the 
partners. After that stocks of the company in the market showed this trend (Picture 5.26). 
We can assume from the chart the company experienced a stable growth until 
October 2017, reaching $3.9200 per share and experienced some volatilities between 
$3.9000 and $3.3700 per share. After the impose of the legislation the trend showed a sharp 
decrease and constituted $2.2600 per share on April 30, 2018, in May they halted to sell 
their shares in global markets.