October 13, 2014  |  By  | 

2 4.1.2 Social, Cultural, Demographic And Environmental, In every way, Malaysia or US is much different today than it was yesterday and tomorrow promises even greater changes. For instance US is getting older and less white. Baby boomers ( 76 million) plan to retire soon. This make younger generation deeply concern about who will pay their benefits which earned thru government The consumption will later change. More people love online shopping rather than brick and mortar business Social – By 2075, USA will have no racial or ethnic majority, eg Hispanic surpassed number of whites in New Mexico in 2010 census data. Social will shaped live, work and consumption patterns.( number of marriages, lifestyles, social programs ) Cultural – This new trends creating a different type of consumers and need new products, different services, different strategies. There are now more people living alone or live with unrelated people. Demographic – The world population surpassed 7 Billion in 2011, USA has just over 310 million people. That leaves billions of people outside USA who may interested. Therefore domestics business is no longer safe when world population is expected at 8 Billion in 2028 and 9 Billion in 2054. The trend of older American is good news for restaurants, hotels, airlines, tours, resorts, health care, crime prevention services and leisure. The world’s longest -living people are Japanese with women living to 86.3 years. This lead to a demand for apartment complexes for elderly, lifecare facilities, Environment – pollution control, energy conservation, waste management, endangered species, ozone reduction/ depletion.. 4.1.3 Political And Legal Forces 1. Political unrest in the Middle East threatens to raise oil prices globally, which could cause inflation. For industries and firms that depend heavily on government contracts/ subsidies, political forecast can be the most important part of an external audit. 2. Changes in patterns, laws, antitrust legislation, tax rates and lobbying activities can affect firms. 3. Eg : Many countries worldwide are resorting to protection to safeguard their own industries. EU (European Union) have tightened their own trade rules and resumed subsidies for their own industries while barring imports from certain countries like restricted imports from US on chicken and beef

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