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

PESTLE Analysis effected on globalization

1.1.1Political factors

The degree to which policy makers are more likely to enter the business environment is crucial to PESTL analysis. Trade, tax, and environmental laws need to be considered. Business restrictions and political stability need factors that determine the success or failure of a business. The ban on the commercialization of tobacco in the European Union, for example, has created a catastrophe for the formula industry, which has led it to other parts of the world, including Dubai. Google needs to pull China out of censorship restrictions. The Arab Spring that led to the widespread revolution made many companies think about their strategies to enter the markets in the Middle East and North Africa. The United States is a case in point. At the very least, the European Union is seeking to gain more power and authority from its members.
1.1.2 Economic Factors

The most popular indicator of economic performance for a national economy or a specific industry sector that is used is the Gross Domestic Product (GDP) per capita. GDP per capita provides only a partial view of the economic factors that might have a bearing on a firm. Inflation not only erodes the purchasing power of consumer but it also has an adverse impact on the prices of raw materials and other inputs that need to be used by a firm in providing products or services. In recent years, the European Union has faced a series of ailing economies queuing up for bail outs, as a viral recession progressively spread across all European shores with Cyprus, Greece, Ireland, Portugal, and Spain being the main victims.

1.1.3 Social factors

Social trends dictate work patterns and attitudes, consumer tastes and preferences, and the particular type, form, and volume of demand for a product or service. An evaluation of social factors enables a firm to predict what pressures are likely to be made by various stakeholders on policy decisions of government, which would in turn have an impact on the firm. Globalization has expanded recreational opportunities by spreading pop culture, particularly via the Internet and satellite television (Asikaogu ,2018).