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Political Political factors have a very minimal effect on the operations of eBay. However, there are some countries that have put up policies that are affecting the various operations of the firm. The effect of globalization must also be acknowledged as having a great influence on the various operations of the firm. The effects of globalization will lead to the continued expansion of the firm. Globalization has led to the growth of international commerce between people who are located in different countries. The effect of this trend is an increase in the markets that the firm serves. Apart from the effect of globalization, the operations of eBay are also affected by the different government policies especially those that govern e-commerce (Klink E. & Klink S., 2005). The company is required to comply with various legal requirements within countries of operation, thus creating a major challenge on the company`s operations. The policies have come through varied regulatory instruments which are geared towards making the various activities that are carried out online to be safe and secure. This will have an effect of increasing the operating costs of the varied online businesses. eBay Inc. is an American multinational corporation that was founded in 1995 and it has continued to grow its revenues in the online auction industry. The company currently operates in more than thirty countries across the world. The net income of the firm stood at $1.8 billion with revenue levels of $9.15 billion in 2010 (Feng, 2011). eBay operates in a very competitive market with many firms. Various trends in both the external and internal environments have a great impact to the organization. Political factors have a very minimal effect on the operations of eBay. However, there are some countries that have put up policies that are affecting the various operations of the firm.

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