Question

Detect and evaluate the political and legal limitations and barriers using both the Domestic and Global environments with Amazon

Answer 1

Political and legal limitations in domestic environment:

1- New cyber law in the country and states is affecting the company as new cyber law making more emphasis on security. Example- malware, spyware etc.are proving major threat.

2- Change of government policy, as in past time there were barriers in entry but with free trade agreement, and bi- lateral agreement foreign are coming here more easily giving competition. Although it is favourable sometimes.

3- Taxes are playing also vital role.

Political and legal limitations in global market:

1- Political instability in foreign is major problem. As, different party government, frame different laws which is detrimental to business.

2- Security is vital problem. As, all the countries can not provide security to the company because of lack of infrastructure.

3- Tax is also key concern in foreign, due to uncertainty of market situations taxes may high.