In 34 paragraph please describe what Political Factors to Co

In 3-4 paragraph please describe what Political Factors to Consider with Honda Motor Company?

Solution

The political factors determine the extent to which a government may influence the economy or a certain industry. These factors are uncontrollable factors for the company as it is not in its control. These political factors include government regulations, legal issues, political situation, inflation rate and other economic factors of that country.

The Honda Motor Company is a multinational company as it has business in many countries. The political factors that influence Honda Motor Company are tax related law, labor law and human resource policy, advertising and promotion policies, environmental policies and related law, international trade related policies and trade restrictions, tariff policies and stability of the government.

The company should also consider political factors which include the probable risk for the Honda Motor Company for example conflict in government regulations, government instability, conflicting and diverse legal authorities, probable nationalization of private assets of the business, government corruption, rules related to international fund transfers and exchange and changes in government policies. As the regulation on some location is less in comparison to other therefore it is more profitable for the company to operate in more free market to make more effective business decisions and for higher growth prospects in future.