The Threat of Amazon.com to Move in Its Drone Research Development Activities

The Threat of Amazon.com to Move in Its Drone Research Development Activities

The translocation of amazon drones out of the United States following the rough regulatory rules of the Federal Aviation Administration will drive this multinational corporation a financial crisis. Though Amazon may acquire better operation revenues in the external locations, the financial frameworks required to establish new markets in the new nations would have a hefty financial repercussion (Spencer and Noah, 2020).. Amazon.com will lose American supplies since it is one of the essential sources of the market for products supplied by amazon.com. Political, economic, and social spheres in the new sections that amazon.com wishes to execute might pose a severe threat to the multinational corporation because of market instability in the new market. Amazon should develop a conceptual framework and integrating the probable threats in the new states before relocating from the United States (Spencer and Noah, 2020).

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According to Bhumika (2018), one of the major legal impacts that Amazon is likely to face in the new venture is the heavy custom duties, taxes, and tariffs imposed on such goods supplied by the company. Since Amazon is not based in the newly vested nations, the state may impose hefty tariffs on amazon.com products to create more revenues for the municipal government and discourage the company’s goods from overtaking the locally manufactured products. Amazon.com faces a serious risk of relocating from the United States because the tax system in the new states may lead to an increase in the overhead cost, thus increased operational expenses of the multinational organization (Bhumika, 2018). Being the federal state, the United States should relinquish better and harmonized financial, operational, and legal operation of amazon.com. The state should create a better operational framework of the multinational company since it is its mother country.

The operation of Amazon in the new state is liable to face either constructive or destructive state regulatory processes (Wattles, 2017). For instance, the nation may decide to invest more in Amazon by developing incentive plans that cushions the operations of amazon.com; thus, final products from the multinational corporation would be less from excessive job creation. Amazon is liable to facing increased overhead operational expenditure towards the production and supply processes following the increase in the tariffs and hefty taxes framed by the state. Heavy tariffs and taxes on the amazon’s products may aim at safeguarding the operation and existence of mother companies from getting swiped off the market by Amazon (Wattles, 2017).

Amazon will influence the public opinion through the quality of the products relinquished to the market, the ethical processes in the production process, the price of the products, the general relationship with the society, like participation in public and communal activities like environmental conservation, creation of employment to the surrounding communities and effective waste disposal. As presented by Wahba (2017), such is the positive processes through which amazon.com will influence the public and the society, including the national government of the state. However, amazon.com may also develop a negative influence on the public by failure to address the demands and requirements of society. For instance, the call on the action of society is to get the best out of such an organization. Bad practices that would trigger the negative influence of amazon.com to the public and the society around are high prices of its products, poor quality of the products, and reduced participation of the firm in the matters facing the society (Wahba, 2017).

 

 

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