STEP ANALYSIS OF NAFTA GROUP OF NATIONS WITH RESPECT TO INDIA

Group Members: Nupoor Mehta Pratik Bidwai Jaswin Sood Rohan Malhotra

SOCIO CULTURAL ANALYSIS

SOCIO-CULTURAL ENVIRONMENT

SOCIO-CULTURAL ENVIRONMENT

SOCIO-CULTURAL ENVIRONMENT

TECHNOLOGICAL ENVIRONMENT

TECHNOLOGICAL ENVIRONMENT

ECONOMIC ENVIRONMENT

ECONOMIC ENVIRONMENT

ECONOMIC ENVIRONMENT

POLITICAL ENVIRONMENT

POLITICAL ENVIRONMENT
Political factors are how and to what degree a government intervenes in the economy. Specifically, political factors include areas such as tax policy, labour law, environmental law, trade restrictions, tariffs, and political stability. Political factors may also include goods and services which the government wants to provide or be provided (merit goods) and those that the government does not want to be provided (demerit goods or merit bads). Furthermore, governments have great influence on the health, education, and infrastructure of a nation.

POLITICAL ENVIRONMENT
Historically, ideology toward FDI has ranged from a dogmatic radical stance that is hostile to all FDI at one extreme to an adherence to the noninterventionist principle of free market economics at the other. Between these two extremes is an approach that might be called pragmatic nationalism. The radical view traces its roots to Marxist political and economic theory. Radical writers argue that the multinational enterprise (MNE) is an instrument of imperialist domination. They see the MNE as a tool for exploiting host countries to the exclusive benefit of their capitalist-imperialist home countries.

POLITICAL ENVIRONMENT
Recent years have seen a marked decline in the number of countries that adhere to a radical ideology. Although no countries have adopted a pure free market policy stance, an increasing number of countries are gravitating toward the free market end of the spectrum and have liberalized their foreign investment regime. Several countries that until recently could best be described as pragmatic nationalists with regard to FDI are the most Latin American countries. One result has been the surge in the volume of FDI worldwide, which has been growing twice as fast as the growth in world trade. Another result has been a dramatic increase in the volume of FDI directed at countries that have recently liberalized their FDI regimes such as India.

INDICATORS OF POLITICAL INFLUENCE

CPI (Corruption Perception Index)

POLITICAL ENVIRONMENT

POLITICAL ENVIRONMENT

POLITICAL ENVIRONMENT

POLITICAL ENVIRONMENT

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