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Discussion of the Environmental Factors Influencing the World Trading Firm

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World Trading is a firm that conducts both domestic and global marketing. Please discuss this firm in an environmental context by considering the questions below:

1. What influence does global economic interdependence and trade agreements/practices have?

2. How is physical infrastructure and demographics important?

3. How does the influence of differences in culture come into play?

4. How are ethics vs. legal obligations and social responsibility important?

5. What effects are generated from the influence of international relations and political systems?

6. What influence does local, national and international legislation have, specifically discussing the Foreign Corrupt Practices Act of 1977.

7. How has technology impacted the firm?

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This firm is located at 12999 Executive Drive, Sugar Land, Texas. The firm is among the largest surplus or closeout auto parts supplier. The firm has both domestic and global marketing. The firm has established itself by making bulk purchases of surplus/closeout auto parts. The strategy of World Trading is to buy cheap and to store in huge warehouses. The cost advantages enable World Trading to gain competitive advantage both in the local market and in the global market. World Trading allows customers to search for the parts they need on its shelves. World Trading has its own shipping department that ships car parts to any part of the world.

World Trading environmental factors are those that effect the auto industry. The US auto industry has been severely affected by the economic weakness that forced two auto makers to declare bankruptcy in 2009. In the USA even though the auto industry has been hit by the weak economic conditions, the auto industry remains one of the largest employer in the country. World Trading gains an advantage when firm adjust their manufacturing and react to changes in the market. World Trading gets an opportunity to make large purchases. It then exploits the global market for auto parts to export auto parts (Russell, T H 2009),.

1. World Trading is facing a difficult global economic condition. The global automotive market is weak with falling vehicle sales and very tight credit conditions. The global condition is most difficult for the automotive industry. Internationally auto makers are reducing capacity and cutting jobs. The effect of global interdependence is that there is a strong negative outlook of the industry, there is a forecast that the dollar will weaken further, disputes relating to auto manufacturers and global players relating intellectual property rights are likely to increase. On the other hand auto industry requires trade regulations so that unfair practices are rooted out.

The reducing of trade barriers internationally because of the World Trade Organization's effort has enabled World Trading to ...

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