DOMESTIC BSUINESS

Domestic Business

[Name of the institute]Domestic Business

Introduction

Business is a small term yet it bears immense impact on the entire world with its unlimited implications. Moreover, with the inclusion of globalisation the corporate territorial boundaries are being blurred. The countries have to keep many things in their priority list as to make legal profits. Every other business wants to enter the world of global business; however this tends to bear much responsibility and accountability on the domestic business as well. The domestic business should not suffer in any case and the so the people in the country.

Background of the Study

Political and Legal Aspects

The political factors are the biggest concern for the countries that operate in developing countries. The reason is due to unstable political environment, unrest and the riots that place at regular intervals. However, in the case of companies in UK, the political environment appears to be stable at the moment but it depends on the nature of business. Besides, issues related to investment laws and taxation that needs to be taken seriously by any firm operating in the country. The investment laws and taxation requires businesses to follow some strict regulations (Hammonds, 2002, pp. 62-78).

The economical factor also carries immense importance and is in fact the second biggest concern for the businesses. The economic factors such as a decline in the currency value, recession, high operating costs and rising unemployment leads to serious consequences for the businesses. Domestic organisation is even facing the similar problems in UK and is affecting their business operations to a very large extent. However, once these problems would get resolved, then any company is going to experience a positive impact on their overall business operations. The best thing for the company is to prepare effective strategies to handle any situation faced by them (Zuboff & Maxmin, 2000, p. 62).

There is another concept which has widely induced in the corporate sector that is Corporate Social Responsibility has become quite popular these days and many businesses are investing huge amount of money to fulfil the requirements of Corporate Social Responsibility. The companies need to give importance to this factor with businesses having large operations and huge budget for various operations; they can afford to invest money to fulfil the requirements of environmental issues. This will produce a significant impact on the goodwill of domestic business and can even set as an example for other companies operating in the same industry. Legal issues are there for every business. Legal issues carry lot of value in those countries that gives lot of importance to the rule of law and various principles that are created by the Government for the whole population.

Significance of the Study

Political factors are related to the changes that take place in the government and the policies of the government and have a strong influence on the business. The current political climate can influence the types of legislation that can influence corporate spending or tariffs on goods and ...