Government by the European commision because of licensing

Government support can give enthusiasm into new business plans for example solar panels and wind farms. The type of support the government could give could be monetary grants and promotion that will help new businesses. Political changes can affect the way a businesses operates because the business would have to make sure that they follow the new policies. For example if the government increased the minimum wage businesses would have to give their employees more money. Government changes can cause businesses to lose money such as Brexit which has affected businesses due to the pound dropping in value.

The UK is one of Nike’s largest markets as they get about $1.1 billion in revenue every year. Nike has been affected through government changes such as Brexit. nike would be affected by brexit as the british pound will drop in value which could reduce their earnings. There is a risk of Nike’s competitors such as under armour taking over the market due to the fact that they don’t have such a big part of their revenue coming from the UK. Another policy affecting nike could be the minimum wage. This might not motivate people to work for them if they use the minimum as people would want to be working for more. In 2017 an investigation was launched on Nike by the European commision because of licensing and distribution activities over Europe. The European commision said the investigation was to do with the sale of goods that have an image or text applied during manufacturing. This is only allowed to happen if a licensing deal was signed by both parties.

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