Socio-cultural forces
According to cultural traits different socio-cultural forces are experienced by most of the international businesses in different countries. In this case, we are going to consider the country of India. The Indian citizens enjoy relatively higher standards of living, with blend of western lifestyles. The country’s economic position has improved over time and peoples’ disposable incomes have also increased thus enabling the local populace purchase houses, cars and other materials assets. Although most of the investment is domestically owned, the society has invited investors from across the world, and New Delhi in particular is multicultural city. The various designs and services in hotels, restaurants, and housing architectures reflect a diversity of cultures leaving and doing business in the in India. These are critical factors which will enable the most of the international businesses to excel in India because it is able to attract and target many people. However, problems do exist since most of the citizens value the domestic products than those imported. This is because of the cultural attachment whereby most of the things in the culture of the Indian people are done differently from the way they are done in western cultures like United States. This means that when there is a cultural clash in some given products, the market in India will shift in favor of the culturally correct products. For instance, there are some foods that cannot be received well by the Indians, yet Americans could be valuing them so much. In such cases, the businesses should cope by adjusting their products in such a way that they match the tastes and preferences of the clients in the culturally different environment.
Political forces
Managers would always to ensure that the country they are operating in forms one of the biggest democracies in the world. Therefore, these managers would opt for countries where there is relatively political stability. As the company establishes in these peaceful countries, the managers will begin getting close to the political elites who dictate most of the laws governing business operations like importation and exportation. When they get allied to the politicians, the politicians will be able to deal with them fairly and favorably, hence giving them monopolistic privileges and competitive advantage over their rivals. . These factors will have the newly established company in this region because for it to thrive it needs to have a good political environment, legal policy, and legislations. A good political system will enable the company to gain favor and thus establish itself in a fast manner in this region.
Legal forces
The business environment in any country has regulations enforced by the national laws that guide international businesses. Such legislations include discriminations policies. Recently, the some governments introduced minimum wage requirements. This will be in favor of the international businesses because it will get a cheap source of labor for the organization. The legal environment in most governments is guided by parliament and state legislations, which is a good basis for establishment of companies in any given country. This will therefore be favorable to the international businesses because of the businesses will gain legitimacy in several regions in a quick way. Examples of such legislations that the international businesses will obtain the privileges of monopolies and competitive advantage include Standards of Weights Act, Trade mark Act 1969 Consumer and Protection Act 1996 (Ahmed 1-2). Some of the international businesses will also benefit from stringent laws including license permission, copyright permission, and many types of other permissions that stop some rivals from establishing in those particular countries.
Considering the powers of the governments over the commerce sector, it is very hard for a politically stable nation to be edged out by a company whose size has grown significantly. This is because it is still the same government that makes the legislations controlling the huge company. In this case, the country will ensure that power is left for the government, meaning that the taxation policies, permission laws and restriction laws will become more stringent so as to either squeeze the company or scare it away from expanding in that particular nation. Under a stable situation however, it is expected that as the companies grow in size, the government revenue from taxation also grows, hence bringing a balance and powers get retained for the government.
