General Motors External Environment Essay Example

General Motors External Environment Essay Example General Motors External Environment Paper General Motors External Environment Paper When the business cycle is at the stage of recession known as recovery, it becomes even difficult for the potential customers to keep up with the routine purchasing habits. This means that the customers purchase only the things which are economical and are of absolute importance. The new protocols imposed by the Fiscal Policy Institute (PI) resulted in a hike on the organization by the government which resulted in the increase of selling prices, thus making the vehicle out of reach of purchase. Inflation as well as deflation marks a straight blow to the cost of products and the services. For instance, if more tax is levied on customers, it implies diminished income which finally results in lower expenditure. All these circumstances directly affect the potential customers to turn away from GM and chose more affordable and economic automotive products. Furthermore, for international markets, the inconsistency in the exchange rate gave others an added advantage. :