The External Environment of Business

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The external Environment of business refers to the external forces which consist of legal-political, economic and culture, that play a part in influencing the direction that the firms take. The legal element of the environment is the framework of rules laid down by the government which business must operate. The labor laws protect the rights of the NBA players by providing for contracts of employment , compulsory insurance , recognition of National Basketball Association and industrial arbitration. For Instances , a foreign team player needs a visa issued by the authority of customs in America in order to join the NBA team political background .The part for political environment is that America has a stable government through democratic election . Socialist country like America has to examine their performance as a policies provider in view of their ability to maintain the standard of living in a democratic country .For example, the import of overseas basketball player by NBA is in view of the United States law and political system .But the international player must proof that he is not a loggerhead to the government. The foreign counterpart must not be bias by local and foreign basketball industries due to the difference of political background and not to go against the government in the United States. The economic environment under the United States operation system is more on market-based policies to achieve government objectives which will have impact on the cost, prices, competitiveness and profitability of business in the socialist country stability. For instances, the currency rate to pay to the foreign players is the same pay to the players in the United States. This will lead to people to become basketball players as there is a high rate of unemployment in certain countries. Nevertheless, the currency rate of the United States influences the profit of the global organization like the NBA which has the headquarter operation in USA as it...
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