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Unit 39

Assignment 6/7

a) Describe and assess the impact of changes in:
i)

The global and European economies; and

ii)

Global and European political factors

on PC World
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Introduction
The Global and European economies are the current amount of wealth within each international
country, totalling to Europe and the whole globe, where sometimes it may change for some nations
due to lending and loans between them
...

These might change other worldwide businesses because of the decisions made, which affects the
business within each country
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I will be answering this question by first portraying the impact made upon PC
World when both the European and global economies change, next the political factors, and then
assessing them
...

a
...
)
Name of factor
The credit crunch

Global demand

Meaning, details
A crisis in the worldwide
banking industry caused by
overlending and trading in
‘derivatives’ leading to
excessive bad debts and losses,
in turn leading to an
unwillingness and inability to
lend to consumers and
businesses
...

When each of the world’s
countries demands for goods
and services from each other
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Affect on PC World
PC World will be increasingly
unable to borrow, or to obtain a
low rate of interest
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This would affect PC World with
the amount of goods and
services provided through
import
...


Commodity prices

The prices of raw materials and
primary products
...
Industrialism is an
economic system that is based
on industry and the mass
production of consumer goods
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This can
be done through special offers,
discounts and extra equipment
when bought and fully
delivered
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EU, Euro, CAP

Trade restrictions and
agreements

Laws and rules agreed between
countries to when sales are
made
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PC World would have to pay
more commodity prices for
materials to assist with the
running of its industries
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More difficult for PC World to
win sales, and will have to
improve their services
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If PC World can agree on a sale
with other international
businesses, they must obey
those laws decided
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These businesses would not only be affected by PESTLE
deriving in the UK, they would also be affected by PESTLE deriving from abroad, as a global factor
...
The agreements and
rivalries made can create a great difference when winning over income from sales, especially abroad
with other countries
...
Other less
common, yet still important economic trends that can affect PC World consist of disparity in the UK
exchange rate, global demand where they would be demanding and importing goods and services for
other international businesses and the height of rivalry abroad where PC World need to compete
with these global companies when attempting to deliver them
...
)

International Terrorism

Wars

Global environmental concerns

International mobility of labour

When terrorist groups or
individuals perform rebel
activities, which are foreign
based
...

Wars can leave great
devastation within international
businesses, leaving lack of staff,
products, and great difficulty of
imports
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Problems between
international relations involving
the use and survival of their
ecology
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The amount of labour decided
upon workers in each country
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International trade agreements

An international agreement on
conditions of trade in goods
and services
...
A cartel is an official
accord amongst firms
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PC World will take a long time
to make efforts on providing
goods and services when
violent conflicts have left such
an impact on their companies
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PC World can benefit by the
sufficient amount of well
working staff in their business,
and can lose out when there’s
either too low on staff to run it
or too much which is costing
the companies income
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Trade in goods and services can
either give PC World a good
supply for customers to obtain,
or have fewer materials, leaving
them to lose out on sales
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If they are successful, and beat
their rivals to an agreement,
then more valued exports can
be made
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Most of these can be a threat to the current lasting of the
industry, and they all may be able to redirect the way the company is performing business
...
Their open
relations to the global environment are made through buying and selling, and if issues which are
prepared from country decisions interfere, such as Global environmental concerns and International
terrorisms, then operations will be less capable to perform
...
Other less general, yet still significant economic tendencies
that can affect PC World consist of International trade agreements, which can lead to them providing
more goods and services that the UK agreed on, OPEC and cartels, so that they make sales through
exports, and international mobility of labour, which has PC World running their business either
sufficiently or badly with their number of capable staff
...
)
The effect on global and European economies and policies can lead to many businesses such as PC
World to change the way they run
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An example of this within the
economy would be the result of the credit crunch, where PC World would need to attract as many
customers as they can to gain much higher profits, because since so many people are lending from
their banks now, they would have more money to spend in stores and could initially buy the big
ticket product as they have the money to afford it
...
There are other competitors who will also want to attract these customers to
make higher income
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Such as lower - priced sales, which can able customers to purchase more,
where the business would be earning slowly, but would be drawing more customers
...
The credit crunch itself
would leave an impact on PC World as if they ever had any trouble with debts, they couldn’t lend and
would have to save up money by reducing the size of the company and letting go of staff
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If the UK was to ever experience war, then
the businesses within the country would suffer greatly, not only by providing international trade,
reduced their way of business but attacks from enemies can bring high devastation and high damage
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They would also need to
attempt making deals with other countries that are less impacted by bad confrontation to discuss
with, as war can bring a border between PC World and those they are negotiating with
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If PC World were a part of war, then they
would have fewer products since it would be more difficult to receive from suppliers, staff would
reduce because they would not want to work in a hostile or less profitable company, and even
imports can become less manageable when their business is suffering
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Conclusion
To conclude, there are many ways that can impact PC World when there are changes in the global
and European economies and political factors
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It is the choice and progression of these reactions that can depend on future
business within the industry, particularly imports and exports
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But if they continue to make the right responses to the impacts
made PC World will be become a much more worthy industry

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