Question

What are the Political conditions like government policies and trade restrictions that an international Freight Logistics organisations face during its operations?

Answer 1

International freight logistics organizations face below political conditions during their operations:

1. Reguatory policies: The International freight logistics organizations have to bear with the regulatory policies of the government wherein specific industries face certain regulations from the government. For example there might be regulations on the material which can be transported by the freight logistics, regulations on the size of freight etc which hamper the normal operations of these organizations and they might have to face losses due to it.

2. Trade restrictions: There might be restriction on trade with specific countries and also trade in specific products which restrict these organizations in proper trading channel establishment and restrict their revenue and profitability as well.

3. Red tapes: There might be some red tapes created which means that corruption exists in the government and the freight logistics companies might have to pay certain amount of money to the government in order to let them operate in particular regions. These red tapes create a restrictive environment for these companies and they might not be able to function properly.