International
Business (MGT520) | 2023 Assignment No. 2
Prepared By: Imtiaz
Hussain
Course: International Business
Virtual University of Pakistan
Requirement
As an international business student, did do
you genuinely believe that political unrest influences consumer behavior and
market demand?
Answer:
Yes,
political unrest can indeed have a significant influence on consumer behavior
and market demand. Political instability, protests, conflicts, or even changes
in government policies can create an environment of uncertainty and anxiety
among the public, which can directly impact their purchasing decisions
Here are a few ways in which political unrest can
affect consumer behavior and market demand:
Uncertain Economy:
In an uncertain political system no one trusts on the other country for to do
international business. Because when
political system change its brings many difficulties like change in prices, taxes,
import tax, export tax which increase and decrease price of the products and
when price change rapidly it change customer behavior.
Disturb supply chains system: When political system change it brings a lot of
problems like in Pakistan, political system is not stable and rate of products
are changing day by day. It is because when political system disturbs then the
government apply more taxes on import which disturb the supply chain of the
company, through which the work process got stop and the prices and commodities
increases rapidly.
Policy changes:
Change in political system brings a lot of changes in government policies, such
as taxation, regulations, or trade agreements. These policy shifts can directly
impact businesses and consumer behavior. For example, changes in import/export
regulations can affect the availability and prices of certain goods, which can
influence consumer choices and market demand.
What marketing strategy should a corporation adopt
to deal with the situation?
Answer:
When dealing with
political unrest, corporations should consider the following marketing
strategies:
1.
Closely monitor
the political situation and always stay informed about the political climate
and any developments that may impact your business operations or target
markets. Always follow the news sources; always engage yourself with industry
associations
2.
You must have to
evaluate the risks and opportunities that are directly associated with the
political system. Always identify that how much your business can be affected
by the political unrest
3.
Always maintain
flexible system in your business and be ready for political unrest and always
create a flexible and responsive environment.
4.
Always keep your
stakeholders informed about your business's position and actions during periods
of political unrest. Be transparent about any potential impacts on your
operations, supply chain, or customer service. Assure customers, employees, and
investors that you are actively monitoring the situation and taking appropriate
measures.
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