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Government environment and Economic environment effect on Global borderless environment.


The effect of Government and Economic Environment on Global borderless environment is given below:


Government environment:

It involves government actions which affects the whole country and the operations of a company or business and the stake holders as well. These actions may be on local, regional, national or international level. Business owners and managers pay close attention to the Government environment to gauge how government actions will affect their company.

Some other reasons are following which effects the global borderless environment by government environment.
Different laws imposed by government not only Effects on business activities but it also Effects on delivery of products and services even across the border like
Change in the tax policies
Increase in the rate of excise duty

The above points play vital role in effecting global borderless environment for example the changes in these points impact the business activities which may change the decision of investors and consumers nationally and internationally.


Economic environment:

Economic environment of the country is very important factor in relation to global borderless environment.
This can include inflation, unemployment rates, interest rates, consumer behavior, and many other measures in order to make up the sphere of the economy that businesses, government, and consumers find themselves operating in economic factors, such as employment, income, inflation, interest rates, productivity, and wealth, that influence the buying behavior of consumers and institutions.
The economic environment resulting from the various financial crisis created a great deal of fear amongst companies thereby limiting their capital spending budgets.
Consumers are suffering in the current economic environment as high interest rates and low income.The world economy globalizes as national economies integrate into the international economy through trade, foreign direct investment, short-term capital flows, international movement of workers and people in general; and flows of technology. This has created new opportunities for many, but not for all.A globalized economy can also produce globalized externalities. Local environmental and economic decisions can contribute to global solutions and prosperity, but the environmental costs, can be externalized to places and people who are so far away as to seem invisible.

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