All these factors and more are necessary

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Nations that heavily tax e-commerce platforms, such as Amazon, reduce the profits and competitiveness of the company by cutting down on their net revenue. They also cut down on profits by lowering their sales volume since they make their products more expensive since these higher costs are passed on to buyers. Political stability: Most prominent multinational corporations require intricate supply chains, trusted legal and financial services, as well as a healthy, well-educated workforce.


For such massive organizations to function properly and carry out their board members email lists core value proposition. The maintenance of such factors requires a stable political environment and strong government institutions which can regulate both the private and public sectors. This explains why Amazon has such a strong presence in developed nations, but has been dealing with significant difficulty in expanding to developing and least developed countries.


Favorable government policies: We have already discussed how government policies which encourage e-commerce are beneficial to companies such as Amazon. However, it is also important to remember that such policies also promote the rise of competitors within the online retail industry. This is especially true in developed countries that have solid antitrust laws, which encourage competition and prevent monopolies from forming between a few companies. Restricted market access: Another way in which political factors may affect Amazon is direct or indirect hostility from specific governments.