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How Different Political System Affect On Honda

Liberal democracies provide the best political environment for Honda's business as they are economically stable and constitute Honda's largest markets. However, competition will increase and growth may slow compared to emerging markets. Authoritarian systems have a small global population and do not significantly impact Honda. Communist regimes welcome foreign investment and have growing, stable economies, but state control could affect Honda. Theocratic regimes tend to resist western materialism and are not conducive to business.

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60 views7 pages

How Different Political System Affect On Honda

Liberal democracies provide the best political environment for Honda's business as they are economically stable and constitute Honda's largest markets. However, competition will increase and growth may slow compared to emerging markets. Authoritarian systems have a small global population and do not significantly impact Honda. Communist regimes welcome foreign investment and have growing, stable economies, but state control could affect Honda. Theocratic regimes tend to resist western materialism and are not conducive to business.

Uploaded by

Dat Truong
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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How different political

system affect on Honda?


Liberal Democracy
Could be considered as the best political system for businesses
Most of liberal democracy countries are rich and politically stable
US and some European countries are the biggest market of Honda
Challenges
The level of competition will increase.
Liberal democracy countries may not grow as fast as the emerging markets
Authoritarian and Absolutist Systems
This system only constitute a small proportion of the worlds population and
income
Not affect significantly on Honda business
Advantage : cheap labor

Challenges
Saudi Arabia: the worlds oil producer and the biggest oil reserve
Political issue such as change the price of oil will directly effect on Honda
business.
Communist Regimes
Open and welcome foreigner investments
Economy in those countries are growing very well and politically stable
Challenges: the State in those countries continues to exercise a very significant
degree of economic control which may effect on Honda business

Theocratic Regimes
It is not good for businesses
They tend to resist what is seen as the corruption inherent in western
materialism

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