NAME: DEPT:

CHUKWUMA IHUOMA A. BUILDING (MPM)

MATRIC NO.: 109052017 COURSE: BUSINESS ENVIRONMENT MPM 810 TOPIC: WAYS BUSINESS DEPENDS ON THE SOCIETY, VICE VERSA

BUSINESS NAME: CHUKWUMA MERCHANDISE ENTERPRISES.

DETAILS OF BUSINESS:
IMPORTATION OF GOODS AND GENERAL

MERCHANDISE DISTRIBUTION OF GOODS

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WAYS IMPORTATION BUSINESS DEPENDS ON THE SOCIETY

Business is a social activity, aimed at creating goods and services within the framework of a society or community. An activity that is legitimate in one society, city or state, may be illegitimate in another. For instance, the sale of short skirt in some countries like Pakistan or Iraq is frowned at whereas it is accepted in other countries like USA, Europe etc. Business exists to create wealth. Wealth is created when goods are sold and goods are sold when there are consumers needs to be satisfied. The business depends on the society because the first concern is to identify the needs of the society and devise methods of meeting them at a profit. That a business succeeds depends on the rate at which it is fine-tuned to its environment. A business is said to be innovative and adaptive, if it grasps the opportunities that the changes bring about and meet the threats. The importation business depends on the society in the following ways: 1. POLITICAL/LEGAL SYSTEMS The political/legal systems of Nigeria affects the importation business. Government policies affect the importation business a lot. For instance the policy in the country that second hand vehicles more than 12 years old should not be imported into the country. Also, government agencies like NAFDAC and Standard Organisation of Nigeria (SON) affects the type and quality of goods being imported. To import food and drugs, approval and licence must be gotten from NAFDAC. The Standard Organisation Nigeria also grants approval for importation of other goods. The business is also affected by government policies such as bans on importation of certain goods. Therefore laws, policies and regulations affects the type of goods being imported. Government can also provide assistance to small scale business enterprises through micro credit schemes and purchasing large stocks of goods through its agencies or banks.

When a political setting or system is adopted by a country, laws are made to regulate the political system. The law of the society determines how business will be carried out. 2. THE TECHNOLOGY IN THE SOCIETY Technology involves the devices that facilitate business operations such as computers, communication devices, air conditioner, tracking system etc. The technology available in the society determines the type of goods that will be imported. When a society has adequate infrastructure for the usage of certain goods, it enhances the importation of the goods. This in other words increases the profit being made in the importation of the goods. For instance, the importation of machines and equipment which the society doesnt have technology (eg energy) for its use will have minimum demand. Good technology influences easy distribution and selling of goods imported. It is poor ethical standard to supply customers with inferior and unreliable products. The availability of requisite technology needed for any business enhances the favourableness of the business in the society. 3. ECONOMIC FACTORS The society determines the economic factors that affects importation business. Huge capital is needed in importation business and most times loans are needed. Therefore the availability of credit facilities helps in the importation of goods. When loans are made available by financial institutions it affects the business negatively. Also the prevailing interest rate determines the profitability of the business in a situation where loan facility is gotten from the bank. The exchange rate of Naira in relation to other foreign currencies like pound sterling, American Dollar, inflation and interest rates. The exchange rate determines the price of the goods and the profit.

4. CUSTOMERS/ COMPETITORS/DISTRIBUTORSHIP The importation business depends on the demand from numerous customers. For instance in Nigeria, the kind of cars being demanded by the customers determines the importation. The purchasing power of the customers determines the demand and their ability to pay for the goods. Importation business has lots of competitors. The number of competitors determines the demand and supply of the goods. When there are many competitors, the supply of the goods increases and the demand decreases. This affects the profit made because when the competitors are many the prices for the goods reduce thereby making the company not to make much profit. The availability of distributors enhances the effectiveness of the business because it ensures the goods are at the right place at the right time.. If there are no distributors in a society, the goods imported will not reach the consumers at the right time and this delays turnover of the business. 5. CULTURE/ETHICS OF THE SOCIETY The culture/ethics of the society affects the acceptability of goods imported or otherwise. Where a particular good is not accepted in a society, this affects the business negatively. Consideration is made when importing a good to ensure that it doesnt affect the moral standard of the society negatively because this will have adverse effect on the demand for the items.

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WAYS SOCIETY DEPENDS ON THE IMPORTATION BUSINESS.

1. EMPLOYMENT The society depends on the business for employment. The importation business gives employment to members of the society such as distributors, suppliers etc. For instance, in the ports there are dock workers who load and off load goods from containers. 2. AVAILABILITY OF FOREIGN GOODS Society depends on importations to be able to have access to foreign goods used in other societies or countries. Furthermore, foreign investments account for the capital, multinationals and other large business organizations in Nigeria. 3. TECHNOLOGY TRANSFER Technology transfer is effected through importation. Machines and equipments being used in other countries are imported to the society in order to keep the society abreast with current happenings in other places. The society depends upon foreign markets for supply of technology, machinery and equipment. 4. SUPPLY OF RAW MATERIALS FOR PRODUCTION Industries in the society depend on importation in order to access foreign raw materials needed for production. For instance, most Nigerian companies are dependent on foreign markets for their supply of raw materials, technology, machinery and equipment. 5 DISTRIBUTORS Distributors depend on the importation of goods to enable them channel the goods to wholesalers and retailers in the local markets. of