Answer to Question #237793 in Macroeconomics for Hope

Question

List four factors in the macro-Environment and explain how each of these external forces can influence Volkswagen in anyway

Answer 1

Regulations and laws of different countries.The organization has to follow the regulations e.g taxation and imports.

Competition.

Volkswagen faces competition from other brands such as Mercedes.It has to produces vehicles that are favourable to customers.

Technology

The company has to be updated on current technology in order to remain relevant in the market.This is through the means of advertisement and also comfort of the vehicles produced.

Economy

The economic conditions of a country influences the purchasing power of the citizens.When the unemployment rate is high the purchasing power will decrease.The company will have to consider prices basing on the economy.