INT 220 Module Three Assignment
Economic and Political Environments Comparison
Jennifer Moore
Global Dimensions in Business
Southern New Hampshire University
May 21, 2022
Section One: Application of Data
Information on the political system is essential to understand how healthy the local
market is. Desbordes and Vauday (2007) assert that the laws and regulations put in place
by the government play a huge role in enhancing local business and economy and
understanding the political system is important to enhance effective decisions regarding
the area.
Information on the economic classification of a location is essential as it will help in
understanding consumer income, spending, and the ability to purchase a product. It is
crucial to consider consumer class before entering any market because it directly affects
the local market.
Economic blocks impacting trade have an influence on business growth, competition, and
prices. Understanding the economic blocs that apply in the country will help the company
structure its business effectively.
The Gross Domestic Product of a country represents a country’s ability to expand its
economy and allow a conducive environment for growth of business. A high GDP
indicates that there are numerous opportunities for expansion in the country and that their
local market is worth entering. However, a low GDP indicates that market is not worth
investing in.
Purchasing power parity indicates the exchange rate between countries. The currencies of
the two countries are compared including the prices, economic productivity, and the
standards of living. The products must be priced the same in both countries to ensure
