Subject-Sustainability in Global Business, Topic-Gold Mining Industry Assignment

Subject-Sustainability in Global Business, Topic-Gold Mining effort In Armenia - Assignment ExampleSuch forecasting has resulted in greater invasion of the international investors in the country with a motive to extract a boastfulr volume of gold. However, critical analysis to the place setting reveals that such repeat and continuous invasions in Armenian gold industry have resulted in a major consequence of hazardous digging activities (Abrahamyan, 2012). To obtain a better insight of the gold excavation advantages and industrial disadvantages of the same, a PESTEL ( policy-making, Economic, Social, Technological, Environmental and Legal) analysis of the country has been considered in this essay. Based on the analysis results, the give-and-take in this essay further attempt to measure the extent to which, the gold industry can be sustainable. Moreover, the essay also aims to provide rational solutions on the basis of which gold industry is likely to work out in a more sustai nable modality. 2. PESTEL Analysis of Gold Mining Industry in Armenia 2.1. Political Elements In order to attract a larger percentage of global investments in gold minelaying industry, the political brass of the country has adopted a comparatively flexible international trade policies and plans with a vision to promote its exports, which acts as the main source of national income for Armenia (CIA, 2013 Stuhlberger, 2012). Although the increased foreign investments in the gold mining industry of Armenia has resulted in its augmented national income prospects, with the inflow of a greater volume of foreign currencies, the country witnesses immense complications in terms of corruption. Furthermore, the currently persisting un well-disposed relationship amid governmental bodies and the mining sector investors have also resulted in greater degree of corruption within the national mise en scene (Stuhlberger, 2012). In addition to these national issues, the country has also been facing political conflict issues with Azerbaijan and Georgia, which has further modify its potentialities to attract a larger volume of foreign investment in the most sustainable manner for its gold mining industry (Nichol, 2013). It is thus recommendable that a stable and more organised political system must be begined by the responsible governmental bodies in Armenia in order to develop its gold mining industry in a socially responsible manner. 2.2. Economic Elements The economic ascertain of the country has developed quite rapidly, wherein the contributions made by the gold mining industry can be argued as inevitable. However, the economic crisis situations on a global context have adversely stirred the economic stability conditions of the country to a large extent being majorly depended on foreign investments. As a matter of fact, with the shrinking purchasing power of customers in the gold industry, the investment trend also declined, which affected the Armenian economy adversel y. However, in the recent years of post-recessionary phase, the increased demand for gold has attracted a large number of foreign investors in Armenia (Business Reporter, 2013 UN, 2012 Chshmarityan, 2005). It is worth mentioning in this context that in order to be favourable towards the development of mining sectors and suffice the increased demand of valuable metals and minerals, the Armenian government levied taxes and regulations at a marginal extent, focusing more on charging royalties on the miners. However, unlike expectations, these tax control measures to facilitate greater independency of investors in the gold mini