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Blog 3: Huge Protests Fan Egypt Unrest

February 1, 2011

Due Date: February 1, 2011

Article Sourcehttp://www.bbc.co.uk/news/business-12235625

Article Date: February 1, 2011

Article Title: Huge Protests Fan Egypt Unrest

Summary:

Protests in Egypt have been growing over the past few days and protestors are hoping to grow to over 1 million people. They want to see President Hoshni Mubarak 30-year’s reign come to an end. President Mubarak has said that the army will not use force against the protestors. The growing unrest has already caused a cutoff of the internet and text messaging services and it is estimated that throughout the country there has been 300 fatalities.

Reflection:

International businesses need to be very aware of the movement in Egypt so as not to offend neither the government nor the protesters. For example, if there ships are docked in Egypt they need to be aware of the unrest and make sure to be sensitive while in Egypt. Businesses already located in Egypt will have to be careful not to anger the crowd as it can lead to property damage and perhaps closure of business. Businesses whose supply channels come from Egypt or who are somehow tied to Egypt will have to understand the nature of political unrest so that they do not push too hard on suppliers who in turn push hard on those in Egypt who cannot do anything about the political unrest. Often times political situations can cause problems such as boycotts or other trade barriers that businesses must be aware. Businesses will have to be alert about this unrest so they can adjust their trade patterns, such as imports and exports, correctly to adjust to the political environment factors. Being alert can keep them from offending the country and also so that if a new leader is elected they are able to adjust if to how it will affect them. For example, if they are manufacturing in Egypt and a new leader is elected they will need to know if wages are changing or if they have to pay different taxes, etc. Additionally, if a new leader is elected and Egypt makes changes it is important for businesses who are looking for new opportunities so that they can take into consideration the political environment factors and if this will become an emerging country or not. Finally, it is important for businesses to keep in mind these political environment factors because it will help them understand where the culture and economic system may be headed.  Depending on the leader in power and the stability of the country, there may be improvements or degradation in the country. One final point: the whole political atmosphere will impact any US business because of the whole Middle Eastern situation/tension and our dependency on oil.

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