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NAME: SITI SARAH BINTI NOOR ALSHURDIN

STUDENT NO: 62213114005


GROUP: TDP 10 (SPC)
Q. Why is it difficult to run a business in certain countries than other countries?
Running a business is not as easy as ABC indeed it needs a lot of effort and
hard work. There are certain elements that need a lot of things to be taken into
account before running a business especially when it comes to the multinational
business. It is difficult or challenging to run a business in certain countries than
other countries maybe because of the condition of their politics, economics,
sociocultural or technologies.
First of all, lets see how the political situation of a country can affect the
business. To ensure that a business run smoothly, the political situation must be in a
good condition because the political issues can lead to other issues. For example,
the corruption issues in India has become worst and worst and this give a bad
reputation of India and also ruin the investors confidence. Based on the news from
The Hindu, a survey has been carried out regarding the global corruption and
almost half percent of Indians reported that they have paid a bribe to access the
public services or institutions as well as education and healthcare. So, the political
situation play the most important role for a business. (Ramachandran, 2013)
In addition, the economic condition of a country should be considered too as
we all knows, business and economic condition always come together. If the
economic performance is good, then the business also becomes stable and vice
versa. The economic factor includes inflation rates, interest rates, foreign exchange
rate, economic growth etc. For example, according to the official figures published
by the central bank, Venezuelas annual inflation rate is the highest in Latin America
at 63.4%. They have died down but many continue to struggle with shortages. The
central bank did not publish its scarcity index which is a measure of missing goods
from the stores, but shortages of such essential goods like milk, toilet paper
continue to be the main attention by the consumers. (BBC News Latin America,
2014)
Next, the difficulty to run a business in certain countries also because of the
sociocultural factor since different regions practice and live in different culture,

religion, tradition and behaviour. This factor sometimes can be too sensitive for
some society especially when it comes to their religions. However, when we talk
about sociological, it is not only about the culture but it can be more than that. It
also includes the demographics, and population analytics. For example, in the
Muslim country, all the products specifically foods must be produced in the correct
way or in a simple word HALAL. This is because they are really sensitive about this
Halal issues. Based from one article from the BBC Radio 4, a recent report by The
Economist proclaimed to businesses: ignore the Sharia conscious consumer are at
threaten. The global Muslim population is now 1.8 billion and rising fast. In response
of this report, there has been a lot of goods and services aimed at Muslims.
(Campion, 2012)
Lastly, it maybe because of the technological factor which pertain to
innovations in the technology that may influence the operations of the industry and
market favourably or the other way around. For example, nowadays, business needs
the internet access to make the business run smoothly and globally. An article by
Matthew Sparkes in The Telegraph, he wrote about the internet access in North
Korea as most people do not have the internet but they do have Kwangmyong, the
intranet which was opened in 2000 and includes a search engine, email and a
browser. It is free to use and open to anyone who can get access to a computer but
in order to have their own computer which averagely cost about triple of their
salaries, they need the permission by the government. Indeed, the only people who
have the real internet access are political leaders and their families and also
students at elite universities. (Matthew Sparkes, 2014)
In conclusion, all of these factor may cause the difficulty in running a
business in a certain countries. When it comes to global world, the business must
have the ability to adapt with all of the circumstances and being able to face the
risk. Thus, before doing a business, one has to do some research and study about
the other countrys background or specifically carry out the PEST analysis so that
they can determine the problems and comes with the suitable and appropriate
strategies to be implemented.

References
BBC News Latin America. (2014, September 10). Retrieved from Venezuela's annual
inflation rises to 63.4%: http://www.bbc.com/news/world-latin-america29140359
Campion, P. M. (2012, August 26). BBC Radio 4. Retrieved from The Future Is Halal:
http://www.bbc.co.uk/programmes/b01m0pq2
Matthew Sparkes. (2014, December 23). The Telegraph. Retrieved from Internet in
North Korea: everything you need to know:
http://www.telegraph.co.uk/technology/11309882/Internet-in-North-Koreaeverything-you-need-to-know.html
PESTLEANALYSIS. (n.d.). Retrieved from What is PESTLE Analysis? A Tool for Business
Analysis: http://pestleanalysis.com/what-is-pestle-analysis/
Ramachandran, T. (2013, July 11). The Hindu. Retrieved from Global survey paints
dismal picture of corruption in India:
http://m.thehindu.com/opinion/blogs/blog-datadelve/article4904739.ece/
Surie, M. D. (2014, January 22). Weekly Insight and Analysis IN ASIA. Retrieved from
Corruption in India and the Rise of the Aam Aadmi Party:
http://asiafoundation.org/in-asia/2014/01/22/corruption-in-india-and-the-riseof-the-aam-admi-party/

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