What is political economic analysis?
Political economic analysis is the study of the distribution of power and wealth in foreign countries. Over time, this area of economics has grown to political history, geography and psychology. The company carries out political economic analysis to recognize opportunities and prepare for potential threats in the sale or operation of the foreign market. These businesses are usually interested in understanding the position of the country in areas such as trends in family intake, problems with global warming and international immigration concerns. By performing political economic analysis, the enterprise can be better prepared to overcome obstacles or realize in advance that going to such a country would be an unprofitable enterprise.
The definition of political economic analysis now includes concerns about globalization and global warming. Political economic analysis is no longer just an exploration and analysis of the division of wealth and power between individuals or social groups. Instead, it takes into account all aspects of political, environmentaland the social environment of a country that can affect international trade. Political economic analysis also provides a deeper level of understanding of government power, abilities, responsibility and sensitivity. For example, the analysis should show how the government would solve problems with the copyright to respond to natural disasters.
The purpose of a political economic analysis is to find out whether the implementation of international trade in a particular country would have certain political or economic risks. This does not necessarily mean that it is an unprofitable investment. The enterprise can use this information for a strategic position in advance to minimize all perceived risks. He may also want to analyze costs and benefits to see if the advantage of the risks, moving to a particular country is worth continuing. Another purpose of performing this type of analysis is to assess the level of local competition on abroadThe market to see if there are any obstacles to the entry.
specific areas of interest for enterprises conducting political economic analysis usually include the view of the level of income of the population, environmental policy and concerns about immigration for a foreign country with which it wants to trade. For example, residents must not approve foreign companies entering their country and bring employees instead of hiring a local labor force. It may not be possible for the enterprise to obtain visas to transfer employees in certain fields or positions. Instead, the company may have to hire and train local residents to perform the necessary tasks.