International and Global Business- Assessment 1- word limit- 2000 MNE- NISSAN In the report, the following key themes must be addressed from the unit, including: - Macro- Environmental risks - Geo-...

International & Global Business
Assessment 1: Nissan MNE
Table of Contents
Introduction    3
Macro-Environmental Risks    3
Gross Domestic Product and Automobile Industry    4
Fiscal and Monetary Policy and Automobile Industry    4
Employment    5
Inflation    5
Climate Change    6
Natural Disasters    6
Uneven Weather Patterns    6
Desertification    7
Drinkable Water Shortages    7
Geo-Political Risks and Opportunities    7
Regional Power Rivalry    7
Strategic and Regional Economic Partnerships    7
Bi-lateral and Multilateral Free Trade Agreements    8
Attractiveness of Market Entry of Nissan MNE    8
Indian market (Asia)    8
European Market    9
References    10
Introduction
Nissan is one of the largest and most popular automobile manufacturing companies in the global market. It is originally a Japanese company headquartered in Yokohama.The company has various owned subsidiaries, Nissan, Infiniti and Datsun. The company also calls its own tuning products for performance, branded as Nismo. The Nissan group was originally named as Nissan Zaibatsu. The company was founded more than a hundred years ago in 2011, by Mansujiro Hashimoto, Kenjiro Den, Rokuro Aoyama, Meitaro Takeuchi, YoshisukeAikawa and William R. Gorham. Nissan now exports manufactured automobiles in almost every country, and has truly established itself as a multinational enterprise (MNE). Nissan has grown all the more powerful with its partnership with Mitsubishi in 2016 and Renault in 2013, Nissan has been a partner in the Renault-Nissan-Mitsubishi Alliance since 1999. At present, the sixth largest automobile manufacturing company in the global scale is Nissan, led by Toyota, General Motors, Volkswagen group, Hyundai Motor group, and Ford respectively in the first, second, third, fourth and fifth ranks. The Renault-Mitsubishi-Nissan Alliance happens to be the fourth largest automobile manufacturing corporation in the world, when regarded together as a group. The Nissan Multinational Enterprise is now headed by Makoto Uchida, since 2019. As of 2016, the company had produced 5,556,241 completed units for sale in a year. Nissan generated revenue of 11.95 trillion Yen, as of financial year 2017 (Khanh & Akerib, 2019).
Macro-Environmental Risks
The overall condition of economy for a company or organisation to survive and thrive is known as macro-environment. It is not influenced by any particular sector or region, rather it depends on the broader aspects of a political space, like a whole country, or a union of countries, like the European union (EU). Generally, macro-environmental risks are defined by Gross Domestic Product (GDP), monetary and fiscal policy, employment, consumer expenditure, and inflation. It is different from performance of a particular business sector, and it is more intrinsically related to the general business cycle (Sales & Driven, 2017).
Gross Domestic Product and Automobile Industry
The automotive industry and range of Gross Domestic Product (GDP) of a country has a directly proportional relation in between.Countries with higher Gross Domestic Productalways require higher mobility and in need of greater reasons of transportation. But it must be remembered that in countries which are labelled to be developed, the demand market for the saturation of automobiles has already been saturated, and hence, the demand depends on only the replacement of automobiles. The countries with highest GDPs in the world as per rank are United States of America, China and Japan. China has lower GDP than USA, but due to higher range of population and constantly rising GDP, China sells the most units of automobiles to its consumers. Japan sells much lower but automobile industry thrives greatly in the country.
Japan holds the rank of third highest GDP in the world, but Japan’s GDP is shrinking rapidly since 2014, so it is a reason of concern for Nissan’s automobile sales in the country. The Covid-19 pandemic is said to have to a considerable effect on Japan’s GDP, and it is said to have been decreased by 0.2%. Therefore, Nissan’s sales in the country are worrying, and Nissan must look for its global market more than its sales at origin country (Subramanian, 2019).
Fiscal and Monetary Policy and Automobile Industry
The automobile industry plays an important role in a country’s economy. If the monetary and fiscal policies of a country is stringent, the automobile industry cannot grow, because the consumers cannot take resort to automotive loans and buy vehicles. On the other hand, if the monetary and fiscal policies of a country is less stringent and the common citizens can take loans at lower levels of interest, it is always easier to buy vehicles, in turn, higher rates of automobile sales strengthen the economy, because investing in an automobile is a continuous process, only a vehicle is not an investment, it needs fuel and tuning from time to time as well.
In case of Japan, the monetary and fiscal policies are far less stringent because the economy of...