INT 220 Module Three Assignment Template
Economic and Political Environments Comparison
Complete this template by replacing the bracketed text with the relevant information.
Section One
In the space below, describe your initial thoughts how insights from the on required data to be
collected could help to inform business decisions. For example, consider what information each
data point provides, whether you think some data points should be weighted more less heavily or
than others in making a business decision, what ideal data points might look like for expansion
into a new market for your product, the ways that different political systems may impact a
decision, and so forth.
In the present context, it is very obvious that global business and trade are closely associat ed with
the politic al and economic surroundings of the region. International businesses require
understanding the ongoing trends in specific markets. While taking big business decisions, it is
important for the organization to look into the popular political views on specific topics and heavy
tariffs on certain goods. As per Dunung (2019), organization needs an to consider important factors
like economic and political while deciding to participate in international trade and business. The
author states that the political system is the basic system of government and politics that exist in a
specific country (Carpenter & Dunung, 2011). e The political system study is always complex and
extensive because the laws vary from one region to other. For instance, an organization needs to
focus on specific questions such as:
• Does the country’s government is stable?
• Do you want enter to into business a trade where the specific country's government is
controlling the regular trades and the life of the people?
• Does the country’s government transparent about the is legal, political, and economic
decision-making process?
The above-mentioned questions can help the organization to decide whether participate to in trade
business with a specific country. Apart from that, the organization needs to focus on economic
factors such purchase as power parity, gross domestic product, and economic classification.
Therefore, the organization’s manager needs to give emphasis on the country’s income and its
distribution while evaluating the trading with the country. This is important here because these
factors can affect the regulatory, legal, and commercial infrastructure, including energy ,
communication, and transportation, along with the purchasing power the country's people of
(Carpenter & Dunung, 2011).
According to Dunung, the gross domestic product is the value of all the services and goods that
are produced in a single year by a specific country, which is also calculated with dollars. US
Basically, the author states that the purchasing power parity is the economic theory that ensures
that the service and goods are purchased for the same currency and price by exchanging the rates
among the countries (Carpenter & Dunung, 2011). For example, the digital camera costs the same
when you purchase the it in countries like California and London. Moreover, the human
development index another essential is factor that an organization needs to consider while choosing
the trading business. The human development index usually measures the satisfaction of a country's
people in three specific major areas such as access to quality education, life expectancy, and
livable income. Likely, the organization can grow its business and decision-making process while
planning trading with another to do country.
