Political-Legal Environment Affecting the Economy of an Industry

Political- legal environment is one of the economic environment that its development has powerfully impacts on the marketing decisions of the company. The political environment consists of laws, government agencies, and pressure groups that define or limit various organizations and individuals in a given society. each(prenominal) factors of political environment has its own functions and impacts on the economic activities of the industry. The economic systems pass best with at least some regulation.When an industry with well-conceived regulation, it can grant more opportunities in competition and ensure fair market for goods and services. The humans policy is a set of laws and regulations that the government makes to guide commercial or to limit business for the good of society as a whole. close to marketing activites requires a wide range of laws and regulations to stable the system and wait on to make true marketing decisions.Legislation affect business around the domain of a function and it has increased steadily over the years much(prenominal) as local anesthetic-content laws, effect restrictions, tax controls, price controls, labor problems. .etcChina is one of the Samsung market and it has some laws relates to some issues such as custom import and trading, foreign investment, schooling technology, pricing and etc. o regulate the activites or the development of Samsung electronics industry in China, for example Provisional politys on Trade Administration of Technology creative activity and Equipment Importation 1- 1996, Implementation Rules on Small-Volume Frontier Trade of Importing Machinery and electronic Products, Notice on Policies for Reform and Adjustment of Import Tax, Regulation on Administration of Organizations in Charge of Import or Machinery and electronic Products in Localities and Departments at the Central Leveletc and through those laws, Samsung enterprises located in China must comply with all the articles of Chinese laws an d all the regulations that they property together. The regulations are constantly changing and the marketer must work weighed down to keep up with changes in regulations and their interpretations.. . . Another example is the activites of Samsung electronics VietNam (SEV) in trade and paying tax.According to some regulations and laws on taxes, the contributions to the budget through taxes including import or export taxes, value added tax (VAT) and environmental comfortion taxes. The political sanctions, which protect the companies from each other. Although business executives may praise competition, they sometimes try to s fork out it when it threatens them, so laws are passed to defined and prevent unfair competition. For example, Korean companies have been increasingly subject to the extraterritorial reach of foreign antitrust laws, in 2005, the US department of Justice(DOJ) imposed fines of $300 million on Samsung electronic, a Korean manufactuer of dynamic random access memo ry(DRAM) and its US subsidiary, Samsung semiconductor, for participating in an international conspiracy to fix prices in the DRAM market.In addition, according to local reports, the Japan fair trade commission will fine affiliates of Samsung electronics an unprecented metre of several billion yen for price fixing. This was because their sale to subsidiaries of Japanese companies indirectly affected the Japanese market. The Japanese sanctions besides protect the right of their regime and consumers. Another example is the patent infringement between Samsung and orchard apple tree. According to US infringement law, US Court orderedSamsungto pay $1. 05 billion damages, aft(prenominal) ruling that the South Korean firm infringed on someApplepatents inpatent infringement trial between Samsung and Apple.And after that, Samsungs entire line of galaxy were banned in Europe such as the Galaxy S II the Galaxy Tab 7. 7 The government regulation also help to protect the interests of society against uncurbed business behavior. For example, Samsung had been accused byChina Labor Watchof countenancing irregular and even inhumane conditions at its factories in China, and the group noted that the workers overtime at the facilities could reach or often times exceed deoxycytidine monophosphate hours a month. Under current Chinese law, overtime is limited to 36 hours a month. After that, Samsung quickly moved to address the problem also further suggests that Samsung is taking this very seriously.