An Environmental Analysis Essay Example for Free

An Environmental Analysis Essay An environmental analysis of the constraints in both the host and home countries is of primary significance in determining the conditions of the host market, thus giving the home country the option to adjust according to the conditions in the host country. There are several important factors that should be considered in the environmental analysis, specifically of the host country, Turkey, and of the home country, the United States of America. The factors for both the host and home countries include but are not limited to the political environment, the judicial and legal environments and the economic environment. The current political environment in the United States is primarily led by the Republican Party headed by President George W. Bush. However, the presidential elections are scheduled November this year where Senators Barack Obama and John McCain from the democratic and republican parties respectively will represent their political affiliations and seek office in White House. America’s structure of government is a representative democracy and the system of government is a federal republic where there are contiguous states. On the other hand, the legal environment in America is basically pegged on the country’s system of governance. That is, the laws of the country are created by the bicameral Congress composed of the House of Representatives and the Senate, apart from the state and local laws created by the state and local levels of the government. The judicial system is basically comprised of the lower federal courts and Supreme Court which is the ultimate arbiter of the American laws. There are also appellate courts where cases can be filed for appeal and where decisions can be overturned depending on the merit of the case filed. In general, business in the United States in the context of the legal and judicial systems is healthy as there is a very minimal government control of the market, key private players in the economy are given the freedom to decide for themselves on a micro level as far as the market is concerned, and some of the laws are created to actually foster foreign and local trades. The United States economy has recently encountered a major setback primarily in the stock market, thus becoming a major cause of concern for the local corporations operating in the local economy. Nevertheless, the U. S. Federal Reserve System has been consistent in adjusting the interest rates so as to resolve the problem and bring the economy back on its feet (Guha, 2008, p. 9). On the other hand, the host country, Turkey, is nonetheless a regional power with influence reaching Europe, the Caucasus and beyond, and whose membership in the European Parliament is a key step towards becoming a full member of the European Union (Mooradian, 1995, p. 3). But even though there have been significant advancements in the economy of Turkey in more recent years, the country â€Å"cannot consider itself a true democracy† since it â€Å"does not tolerate the freedoms of speech and expression (Angacian, 2004, p. 3). † The country has been under military rule, and that there have been previous business threats from the ruling government aimed at France and Canada after the two latter countries recognized the Armenian Genocide. After both countries recognized the genocide, the Turkish government implemented a boycott in French wines and textiles as well as a boycott on Canadian products and enforced changes in the business contracts entered into by Canada with Turkey. Two of these changed contracts are contracts worth approximately $335 million and one that is close to a billion dollars worth of investments (Angacian, 2004, p. 3). But even though there are negative sides to the history of Turkey, it can hardly be denied that the country’s economy has been on the rise in more recent times. In 2004, Turkey’s economy has posted an eight percent growth with inflation rates dropping down to single digits. However, the recent developments in the country have substantially diminished its chances of joining the European Union as Turkey has become the â€Å"primary culprit† in the Union’s livelihood as Turkey has become a nation â€Å"stealing manufacturing work while delivering an influx of indigent job-seekers (Goodman, 2005, p. D. 01). † on the positive side, the home country, United States, can opt to venture into the rising industries in Turkey given the fact that the production costs in Turkey such as manpower is lower than its neighboring countries. Since the goods of the country primarily find their way to the rest of Western Europe, the advantage is that the investing foreign company has little to worry about production cost and market reach. On the other hand, the negative side of the market environment in Turkey is that the interest rates in credit are high, thereby resulting to higher prices of products which also results to limited exportation and new investments. Thus, it is significant for the company to consider relying on its capital resources rather than investing by financial borrowing as doing the opposite will most certainly result to higher prices of products manufactured. Moreover, it appears that the business environment in Turkey is not entirely friendly when the context of military rule is solely considered. In more recent years, Turkey has also experienced a steady growth in its technology sector although a large par of the country remains agricultural. The apparent diversity in culture, especially the Kurds and Turks, has resulted to differences in access in technology among the population as most Kurds are situated in the outskirts of the country. Some cultural considerations that should be addressed are the variations in the local purchases of goods depending on the financial capabilities of the local residents as well as the prospect of export in Western Europe where more cultural varieties are present, the strategies molded from the cultural context in Turkey and the leadership style of the company needed to address the economic and political concerns faced by the country and its people. References Angacian, S.(2004). The Undemocratic Democracy of Turkey. Armenian Reporter International, 36(48): 3. Goodman, P. S. (2005). Turkey’s Evolving Economy: Country Ties its Fortune Closer to Global Trade, Putting Pressure on Western Europe. The Washington Post: D. 01. Guha, K. (2008). Blowing in the Wind: America Braces Itself for the Risk of a Second Dip. Financial Times: 9. Mooradian, M. (1995). Political Analysis—Turkey: A Regional Power. Armenian Reporter International, 29(12): 3