Tata Motors

Topics: European Union, Tata Motors, United Kingdom Pages: 4 (1482 words) Published: June 24, 2013
International Business

Political problem
The political environment in United Kingdom is quite stable and much more organized than any other countries. The only problem that the firm may face is the high tax rates in this country. Which makes it more expensive as the raw material increases the cost of productions also goes up automatically and this is the reason why many firms stay out of United Kingdom. There are also some policies by the labour contract to avoid exploitation of labour which makes this country much more expensive The famous incident is Tata Nano project in west Bengal which had to be shifted due to the political pressure and there were riots and big problems. So this plant had to shift at different region finally it was decide to Gujarat. Ratan Tata had promised the world that it would be available next year for the common man. This was not happening because of this political problem. This car was also going to be exported to UK. As the production process didn’t start the other thing got to be delayed. This is how one country’s political problem affects the whole manufacturing as well as the sales of a company. Today in financial crises every government is under tremendous pressure for the lack of investment and increasing unemployment. Jaguar Land Rover (JLR), Tata's UK-based car maker beset by recession and falling sales, wants the Government to act as guarantor to underwrite a £340m loan on offer from the European Investment Bank, but the Government is stalling. It also wants Labour to encourage banks to advance it loans worth £400m The company is subject throughout the world to comprehensive and constantly changing laws, regulations and policies. The company expects the number and extent of legal and regulatory requirements and the related costs of changes to the company's product line-up...
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