P E S T E L - ANALYSIS

- Influences International Business as well as Domestic Business But How ? 1. People not serious / dedicating themselves for Countrys Growth for eg. India V/s Japan, China, Germany, Australia. 2. Government and Judiciary taking advantage of Peoples NonParticipation in Countrys Progress / Day to Day Activities. 3. A political System ( Say Janlokpal Oriented) that is stable, honest, efficient, and dynamic and which ensures political participation to the people and assures personal security to citizens, is a primary factor for economic development.

Contd.
Contd.POLITICAL Democracy : a) 2 basic political systems are in existence all over the world, namely, democracy and totalitarianism. b) In its pure sense, democracy refers to a political arrangement in which the supreme power is vested in the people. c) Democracy may manifest itself in any of 2 fundamental manners. If each individual is given right to rule and vote on every matter, the result is pure democracy which may not happen.

Contd.PESTEL
- Hence the republican pattern of Government follows whereby the public, in a democratic manner, elect their representatives who do the ruling. - A representative democracy rests on the assumption that should the elected representatives fail to perform adequately, they will be voted down at the next election. - In practice, free markets, property rights and democracies do not guarantee economic growth.

ContdPESTEL
- India, for example is the Worlds largest democracy yet experienced slow growth with destruction of the purchasing power of rupee till date. - The So-called Asian Tigers Hong kong, Singapore, South Korea and taiwan for example built strong market economies in the absence of democratic practices. - China being a Communist Country has transformed since 1974 stage by stage and today being the strongest economy in the World leaving Japan and S Korea Behind. - Totalitarianism also called as authoritarianism wherein accountability is avoided - Say for eg., India.

POLITICAL RISKS AND COVERAGE

ROLE OF NON - LIFE Insurance Companies 1. Indian Corporate is increasingly exposed to kidnapping and ransom ( K & Rs) risks. India Ranks among the top 10 countries in the world with growing kidnapping cases. Approximately over 4,000 incidents of kidnapping occur annually. 2. Risks are going to intensify with increase in the number of Indian Companies expanding their global presence in areas such as Africa, Sri Lanka and Middle East. Existing Risks in Iraq, Iran, Israel, Afghanistan, etc. 3. Risks through sea water in transit Pirates / extortion cases. 4. Using private guards may cheaper than insurance premiums.

ECONOMIC ANALYSIS

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Status of GDP in a Country V/s. Demand V/s. Exports V/s. Imports. Status of BOP in a Country Purchasing Power of a countrys currency Natural Resources in a Country Quantum of population in a country
Several international agencies including the Organisation for Economic Cooperation and Development ( OECD ) and the United Nations classify countries by their economic status. But the best known system of classification is the one recommended by the World Bank in which 211 economies with a population of at least 30,000 are ranked by their levels of gross national income (GNI) per capita. These economies are then classifies as low-income ( LIC ) , Lower Middle Income ( LMC), Upper Middle Income (UMC), High Income OECD and other High Income Countries.

ECONOMIC Contd.. LIC Countries are defined as those having a per capita GNI in 2000 of $ 735 or less ; LMC countries have incomes between $ 736 and $ 2995 ; UMC countries between $ 2996 and $ 9265 and high income countries have incomes of $ 9266 or more. Generally speaking, LIC, LMC, and UMC Countries are called developing countries and rest are developed countries. Rates Of Grown / Inflation / Interest Cost / Savings and Investment / Fiscal Stability/ Financial System ( FSM ) Industrial Policy/ Monetary Policy/Fiscal Policy ., etc. India V/s. EU V/s USA V/s. China ( Last 7 Years )