* Political factors
There are several aspects that should be taken into the consideration. The overall economic situation in the world and in specific regions can take a significant role in a political decision making in any country. For example, the economic downfall in Greece and Spain might influence policies of other European countries which might take new restrictions. The tax policy is another important factor in this context. In Europe the average standard VAT rate is around 20%. Increasing or decreasing the tax rate in any country can increase or decrease the costs of producing and distributing the product. If the production costs increase the price of the product will increase as well and it can have a negative impact on sales and revenue. The environmental policy will definitely increase its impact in the future due to global warming and decreasing natural resources. People will have to find their ways how to produce more goods with less damaging nature. VW car company is already now working on it and trying out new ways how to make cars more environmentally friendly. CO emission tax is another factor of getting a new car, however not all countries have it. * Economic factors
The product will be sold worldwide. However, not all countries are on the same development level. Since the VW Golf and Sony XPlod product is quite expensive, only a relatively small amount of people will be able to afford it. The product’s target group are middle and upper middle class people which means that this car will not be popular in the third world countries or countries that are going through an economic downfall now. Lots of European countries are in debts now and the US are still recovering from the real estate financial crisis, people are trying more to save money than to spend it now. However, there are still a lot of people who would be interested in this product and who could afford it. The producers have to take into consideration the...
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