Sample Essay

The specific external environment for the shipping container terminal takes the form of the following:

Economic Environment:

The shipping industry is directly related to the economic development that takes place in the countries. An increase in economic development results in an increase in trade through the shipping industry as the developing countries require more imports and generate more exports which need to be transported in bulk through containers and ships. This increases the economic activity and the transaction of cargo that takes place at the shipping container terminal. Moreover the increase in the economic=ic growth tends to increase the profitability of the industries in the region including the shipping industry.

 Political Environment

The political environment can influence the shipping industry as it can result in specific treaties and trade unions being formed between countries. Such trade unions and contractual agreements on trade tend to increase the economic activity of the region through the transfer of people, skilled labor as well as imports and exports this leads a increased economic activity at the shipping container terminal. Moreover political environment also defined the legislative environment for the shipping industry which can directly impact the container terminal.

Legislative Environment

The legislative environment for the shipping container terminal tends to comprise of the labor costs, the taxation policies as well as the specific warehousing costs. The legal environment can impose specific laws which can promote economic activity in the shipping industry, like the development of the ports through subsidies or support of the imports and exports through laws allowing alliance countries to increase trade. Aside from this the taxation levels that are determined by the legislature can effect the operations of the shipping industry by putting additional burden on the company in the case of high taxes. The investment in shipping industry can also be increased and affected by the application of laws reducing the barriers to enter the shipping industry.

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