Preview

Pestle - Fiat

Satisfactory Essays
Open Document
Open Document
685 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Pestle - Fiat
PESTLE
Political
* Political insatiability affects the sales of the automobile industry.
The political instability has a direct impact on the sales of the automobile industry. When there is a political unrest the purchasing power of the individuals in the particular area goes down. * Government support towards the industry favourably.
This industry is the 6th largest industry in the world and brings out a lot of revenue and creates employment opportunities. Therefore governments tend to help and protect the industry. Eg: USA bailed out GM and Chrysler * Taxes and levies charged against the automobile industry has a negative impact on the sales
Many countries tend to have taxes or duties against the automobile industry; this may either be to protect their own local manufacturers, to gain revenue, or to discourage buyers due to traffic congestions. (Many BRIC countries today face the issue of traffic congestion). These may be to enact price or exchange controls as well. These additional charges would discourage buyers and reduce sales. * Strict rules and regulations related to the automobile industry throughout the world
Governments tend to have strict rules and regulations with regard to the protection of the environment, employment laws (where safety of the employees is a must), and etc. * Trade Restrictions
Many governments, in order to encourage local manufacturers have trade restrictions in place. The best example would be the US automobile market where a specific quota is allocated to Chinese and Korean car manufacturers. This is one of the reasons Toyota had to setup their own manufacturing plant in USA which created employment opportunities in USA. * Car Scrappage programmes by governments
These are government initiated programmes aimed to promote the replacement of old vehicles with modern ones. This is done with the dual aim of boosting the automobile industry and removing inefficient, high emissions vehicles off the road.

You May Also Find These Documents Helpful

  • Powerful Essays

    SA IBL TB8e Ch09

    • 2493 Words
    • 16 Pages

    Usually, import restrictions that protect one sector of a country's economy will result in foreign retaliation against another sector.…

    • 2493 Words
    • 16 Pages
    Powerful Essays
  • Good Essays

    Auto Industry Bailout

    • 429 Words
    • 2 Pages

    We agree the United States auto industry could not survive without government support for the following reasons: first is the loss of market share to foreign auto makers such as Toyota, and Honda. Secondly, the US auto industry is unable to withstand an economic recession. Lastly the alternative of the government not supporting the US auto industry will result in an increase in unemployment, and can cause other social and economic issues.…

    • 429 Words
    • 2 Pages
    Good Essays
  • Good Essays

    Print ECN 340

    • 586 Words
    • 1 Page

    The opening of an economy to world trade automatically puts local manufacturers at risk of steep competition from cheap…

    • 586 Words
    • 1 Page
    Good Essays
  • Good Essays

    Governments, especially those of most advanced countries, often tend to impose extra taxes or tariffs on imported goods and services in order to protect their own interests and industries. The same happens, for instance, with the automobile industry. Every country that manufactures cars imposes heavy taxes for imported cars and their parts and accessories in order to protect their industry and jobs.…

    • 1027 Words
    • 5 Pages
    Good Essays
  • Powerful Essays

    Freakonomics

    • 1111 Words
    • 4 Pages

    2. The United States government puts a tax on foreign car companies to help United State citizens encourage to buy the American made cars. This acts as an incentive for the citizens to buy American made cars to support the United States economy.…

    • 1111 Words
    • 4 Pages
    Powerful Essays
  • Good Essays

    Gst Free Threshold

    • 2226 Words
    • 9 Pages

    Such a tax (tariff) has the effect of raising the price of imported goods making it easier for domestic produced goods to…

    • 2226 Words
    • 9 Pages
    Good Essays
  • Good Essays

    Guns

    • 362 Words
    • 2 Pages

    Government regulates some large businesses in the essential industries, but the businesses are most likely privately owned.…

    • 362 Words
    • 2 Pages
    Good Essays
  • Good Essays

    Government support can affect a business by whether or not they fund the business and introduce subsidies. For example if they subside farmers.…

    • 893 Words
    • 4 Pages
    Good Essays
  • Good Essays

    To extend a product's life cycle by exporting to currently unserved markets where the product will be at the introduction stage of the life cycle…

    • 1811 Words
    • 7 Pages
    Good Essays
  • Powerful Essays

    Government regulation is one way that society shows it cares about responsible conduct in business. In the early 1990s the Congress of the United States of America passed legislation deregulating the sale of electricity. It had done the same for natural gas some years earlier. Enron took advantage of the lack of regulation of its energy trading…

    • 2529 Words
    • 11 Pages
    Powerful Essays
  • Good Essays

    Vietnam

    • 417 Words
    • 2 Pages

    In each country has there are own government controls and laws that have to be followed.…

    • 417 Words
    • 2 Pages
    Good Essays
  • Good Essays

    They are in a position to dictate the way businesses should be run. The government provides rules of conduct, may it be a new regulation on ingredients deemed fit for children’s food, it provides security and order for its citizens. The government is also in a position to enforce the law and hold individuals accountable for their actions by establishing appropriate punishment for inappropriate behavior. In relation to Wall-E, where the main themes are over-consumerism and destruction of the environment, the government could very well place stricter regulations regarding waste production and disposal, thus avoiding a situation where the surface of the earth is made up of mounds of waste. Since there isn’t a governing body looking out for the long-term interest of the society, their actions go unaudited. Naturally, this can’t be good for the society as a whole in the…

    • 598 Words
    • 3 Pages
    Good Essays
  • Good Essays

    The NAFTA Agreement

    • 1253 Words
    • 6 Pages

    International trade occurs due to lower cost of manufacturing of a product in one country as compared to another, either because of cheap labor or abundance of raw materials needed for production.…

    • 1253 Words
    • 6 Pages
    Good Essays
  • Powerful Essays

    Harley Davidson

    • 6990 Words
    • 28 Pages

    Government regulations are another form of rivalry that the manufacturers have to compete with. Throughout the years, there has been an increase on proposed regulations based on land use, amounts of noise that is allowed,…

    • 6990 Words
    • 28 Pages
    Powerful Essays
  • Powerful Essays

    PUMA case study

    • 3588 Words
    • 12 Pages

    ExternalPolitical FactorsThese refer to the following sub-factors:(I)Government stabilityThis has influence to any business. When the government in which Puma operates become unstable politically business will definitely be affected. For example civil wars affect both operations, leisure's and sports events which are Puma's business. In our case study we saw that after terrorist attacks of September, 11, 2001 and wars in Afghanstan, geopolitical uncertainty led puma to shift its production from Pakistan to China (Puma case study, 2003).…

    • 3588 Words
    • 12 Pages
    Powerful Essays