Task 0 Effects of Globalization on national economies by pestle approach 2



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1.1.6 Legal Factors


Legal factors reflect the laws and regulations associated with the region and the organization. Legal factors may include whether the rule of law is well-established, how fast or how fast the laws and regulations are, and what the regulatory costs are. For instance, the market share of Coca-Cola in Europe exceeds 50 per cent; As a result, regulators demanded that the company give refiners access to competitive products to offer greater consumer choice (Policy, 2016).

1.2 The Impact of Globalization To Local Business

So, when we know enough about the globalization next is the main question the what is the impact of globalization to local business? The following is a classic story, often used by socialists to highlight the ­evils of a capitalist society" B the small town grocer gets mercilessly taken out by the new Wal-Mart in town. The small town grocer may have an established customer base and friendly relations with the community, but it simply can3t match the low prices offered by Wal-Mart. Being a large national company, Wal-Mart has the sprawling global resources and is willing to sacrifice margins to take out local competitors. In the end, customer loyalty means nothing and the grocer goes bankrupt, decades of hard work decimated overnight (Dasgupta ,2006).



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