The Environment of Modern Business
The aim of this essay is to explore a list of ways how the government helps or hinders the development of a successful business environment. In order to achieve the clarification of this subject, PEST(LE) analysis is used.
There is no doubt to say that every nation state needs some form of government to regulate its business affairs. As a function of any organised society, the governments play a key role in the modern business environment. But the form of government differs from nation to nation. Whatever the form or structure, all governments have activities and objectives in common, namely political, economic, legal, technological, and social environment of business. We can use these PEST(LE) factors, mainly in political, economic, legal, technological factors to examine how the government helps or hinders the development of a successful business environment.
The political environment is one of the major effective factors in the external business environment, which has a tremendous impact on the business organisation. Governments frequently use their political power to influence the business environment. By examining whether or not a government is effective, we often consider its political stability, policies and the nature of the government. Take Singapore as an example, despite the inherent disadvantage of a small domestic economy and a lack of nature resources, Singapore aspired to be a “global city” serving the world market and major multinational corporations in the 1990’s, the Singaporean government led the country towards free trade, a free market and an open economy. Since then, the country has established itself as one of the top trading nations in the world and is consistently voted as one of the best business destinations. Singaporeans enjoy one of the highest qualities of life, with a per capital GDP of US$24,000. Singapore achieved this within only one generation. But during the same period of time, the communist government of North Korea did not
There is no doubt to say that every nation state needs some form of government to regulate its business affairs. As a function of any organised society, the governments play a key role in the modern business environment. But the form of government differs from nation to nation. Whatever the form or structure, all governments have activities and objectives in common, namely political, economic, legal, technological, and social environment of business. We can use these PEST(LE) factors, mainly in political, economic, legal, technological factors to examine how the government helps or hinders the development of a successful business environment.
The political environment is one of the major effective factors in the external business environment, which has a tremendous impact on the business organisation. Governments frequently use their political power to influence the business environment. By examining whether or not a government is effective, we often consider its political stability, policies and the nature of the government. Take Singapore as an example, despite the inherent disadvantage of a small domestic economy and a lack of nature resources, Singapore aspired to be a “global city” serving the world market and major multinational corporations in the 1990’s, the Singaporean government led the country towards free trade, a free market and an open economy. Since then, the country has established itself as one of the top trading nations in the world and is consistently voted as one of the best business destinations. Singaporeans enjoy one of the highest qualities of life, with a per capital GDP of US$24,000. Singapore achieved this within only one generation. But during the same period of time, the communist government of North Korea did not
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