The Global Business Game – Personal Report
1. STRATEGIC DIAGNOSIS
1. External Diagnosis
1.11 PESTEL Analysis
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·Political factors:
As for the home-country: USA
The government of the United States is basically pro-business. Its relatively low interest and inflation rates have led to the longest run of GDP growth in its history despite of an economic shut-down occurred in mid-2001. The local government grants my company with long-term tax waivers and abatements to keep me as a way to insure my role as the major employer in the area. However, my company is charged with a relatively high labor rates.
In the rage of international:
Pro-business governmental posture makes Germany a major exporter of highly engineered products. There are four major cities in Germany which are Berlin, Hamburg, Munich and Frankfurt; they cover 8.9 million of the total population.
Spain has had rather turbulent politics and a degree of political unrest lingers. There are three major cities in Spain which are Madrid, Barcelona and Valencia, the total population of these three major cities is 10.3 million.
In Mexico, various administrations have intended to improve the population’s welfare through different kind of economic and social reforms but the improvement is not yet obvious. The four major cities in Mexico are Mexico City, Guadalajara, Monterrey and Puebla, the total population of these four cities is 27.6 million.
The relation between the United States and Japan has been strained since President George W. Bush rebuked the Kyoto Accord on global warming. Junichiro Koizumi who is a reform candidate in Japan is currently in power but it would take three years before his reforms take effect. The major cities of Japan are Tokyo, Osaka, Nagoya, Sapporo and Kyoto. The total population size of these cities is 52.9 million.
Due to the devaluation of its currency in July 1997 in