Solved: Unlike domestic logistics, global logistics involve several additional factors such as political

Ans: Let me consider INDIA for answering above the question. So benefits and challenges have been described below.

Political Factors: In India, Shipping industry is controlled by central government through “Ministry of Shipping”. Due to government involvent this factor plays an important role in shipping industry. Some examples are as follows:

• CHA Appointment: Person who is appointed by the government to act as an agent for operation of any shiiping realted business. These agents prevents the fraud , illegal activities and controls the activities of shipping business.
• Infrastructure Development: Emphasizing on this type of activity helps to encourage the shipping industry for the new investors, and helps in development of sites
• Safeguarding Domestic Market: Thi shas negative impact on industryas it will discourage the foreign players to invest in Indian market, because of less opportunity and less import

Economic factors: Just like political factor, econmoic factor affects shipping industy. Following are some of the economic factors that may affect shipping industry.

• Inflation: It negatively affect the Indian shipping industry as increase in inflation increases prices and thus it will hamper shipping business.
• Push ‘n’ Pull Factors:It positively affects the shipping industry, as due to change in the circulation of money, the purchasing power of people will also change which will ultiately increase the business of shipping.
• Exchange Rates which are required for determining the custom duties and excise duties, assessment of import and export goods, payment of duties etc.

Cultural Factors: Due to globalization number of changes have been observed in india particularly. This cultural shift has impacted the indian work culture. Inoovation such s start-uos, and focuing on make in india particularly have changed the way indian used to do businesses globally. Businesses are ow increasingly catering to rational, practical and current cultural needs and are not based only on traditional models and offerings. This ll have impacted the way shipping industry going to work in case of india.