Political Policies Organization
ACME MANAGEMENT & STOCKHOLDERS
Acme Management & Stockholders Analysis & Impact of the Economic and Political Policies
In any organization, basically there are internal and external stakeholders. The external stake holder's include the shareholders, consumers, competitors and industry analysts. The internal stakeholders include the employees and the management of the organization. But the major decisions of the company are taken by the internal stakeholders. The business strategies, profitability and revenues are affected by the changes in the political and economic policies of the companies who have their business in many different countries.
The current economic and political policies aim for fast growth and the fullest utilization of resources. The economic policy focuses on the complete analysis of the financial statements of a company. It focuses on free trade practices, for example, the Mexican economy has improved since its joining with the North American Free Trade Association (NAFTA). There is a complete free market economy. The organization structure according to the political policy is very complex in nature. It also focuses on the involvement of trade unions in the administration of the organizations. Economic emphasis of the policies is on increasing the global market share and the profitability of the company. The company should also maintain a good corporate image. The political emphasis is on reducing the conflicts within the organizations (Ricketts, 2003).
The economic and political policy has various impacts on the business decisions. The policies lead to changes in the worker rights and the trade liberalization policies. There are also considerable changes in the economic development and national sovereignty of the organization. Various environmental issues and the creation of organizations and committees are also the major business decisions that are impacted by the economic and political policies. The business decisions related to investment in technology & infrastructure and the maintenance of various assets and liabilities are affected by the economic policy. Political policy impacts the business decisions related to mergers, acquisitions, alliances or joint ventures. The political policy might favor these or might be an obstruction to these developmental activities (Matson, 2008).
International Monetary System
An efficient international monetary system is an essential pre-condition for the smooth functioning and expansion of international business. It provides direct financial assistance to the private organizations. International Monetary System helps in solving the financial problems and provides required financial assistance to the organizations all over the world. It consists of many monetary organizations which help in balancing the monetary functioning like IMF, World Bank, Asian Development, International Finance Corporation etc. (McLeod, 1983).
Functions of International Monetary System
The main functions of this system are to promote international monetary co-operation and provide the machinery for consultation & collaboration on international monetary problems. It facilitates the expansion and balanced growth of international trade and contributes for maintaining high levels of employment. It monitors the economic and financial development policies and provides loans to the Central Governments for technical assistance. The system also maintains promotes exchange stability and helps the countries to rebuild their international reserves and stabilize currencies (McLeod, 1983).
Opportunities of International Monetary System
The System provides opportunities for stand-by arrangements for addressing short term balance of payments. It also provides the facilities of poverty reduction and compensatory financing. The International monetary system provides the opportunity to expand and grow the business at an international level. It also provides the opportunities for many organizations to develop new business objectives and diversify their business in other areas as well.
Challenges of International Monetary System
The international monetary system faces some important challenges. It has to overcome the challenge of rebalancing currencies, institutions and rates. The strengthening domestic financial systems are also a serious challenge to the monetary system. The advancing level of competition and the strengthening fiscal policies are the upcoming challenges before the international monetary system (Kato, 2008).
References
Kato, T. (2008). Challenges to the International Monetary System: Rebalancing Currencies, Institutions, and Rates. Retrieved September 11, 2008 from http://www.imf.org/external/np/speeches/2007/093007.htm
Matson, M. (2008). Impact of Government Policy & Regulatory Activities. Retrieved September 11, 2008 from http://infodev-study.oplan.org/the-study/1-background-and-introduction/copy6_of_1-background-and-introduction/
McLeod, A.N. (1983). Reforming the International Monetary System. International Journal of Social Economics, 10(2), 44-61.
Ricketts, M. (2003). The Economics of Business Enterprise: An Introduction to Economic Organization and the Theory of the Firm. Cheltenham (U. K.): Edward Elgar Publishing.
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