STEP Analysis Indo-Nafta

8/3/2019 STEP Analysis Indo-Nafta

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STEP ANALYSIS OF NAFTA GROUP OFNATIONS WITH RESPECT TO INDIA

Group Members:

Nupoor Mehta

Pratik Bidwai

Jaswin Sood

Rohan Malhotra

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SOCIO CULTURAL ANALYSIS



SOCIO-CULTURALENVIRONMENT












TECHNOLOGICALENVIRONMENT





ECONOMIC ENVIRONMENT











POLITICAL ENVIRONMENT




Political factors are how and to what degree a government intervenes in the economy.Specifically, political factors include areas such astax 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 anation.




POLITICAL ENVIRONMENT “Historically, ideology toward FDI has ranged from a dogmatic

radical stance that is hostile to all FDI at one extreme to anadherence to the noninterventionist principle of free marketeconomics at the other. Between these two extremes is anapproach that might be called pragmatic nationalism.”

The radical view traces its roots to Marxist political andeconomic theory. Radical writers argue that the multinationalenterprise (MNE) is an instrument of imperialist domination.They see the MNE as a tool for exploiting host countries to theexclusive benefit of their capitalist-imperialist home countries.





Recent years have seen a marked decline in the numberof countries that adhere to a radical ideology. Althoughno countries have adopted a pure free market policy stance, an increasing number of countries are gravitatingtoward the free market end of the spectrum and haveliberalized their foreign investment regime.

Several countries that until recently could best bedescribed as pragmatic nationalists with regard to FDIare the most Latin American countries.

One result has been the surge in the volume of FDIworldwide, which has been growing twice as fast as thegrowth in world trade.

Another result has been a dramatic increase in thevolume of FDI directed at countries that have recently liberalized t heir FDI regimes such as India.





INDICATORS OF POLITICALINFLUENCE

CPI (Corruption Perception Index)



































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STEP Analysis Indo-Nafta