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PEST Analysis-Political

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The pros and cons of Hong Kong political environment
In the advantages, Hong Kong government carries out a free economy system which allows enterprises freely expand and also low or no transaction costs. Also, Hong Kong has little involvement on business process such as no legislation of tariff, import quotas and revenue duties. With such stable framework and little interference, 759 stores can do business easily since it is mainly selling imported products from Japan and overseas, they have no need to pay for tariff and other duties, making them can have lower expenses, and giving the favorable prices to attract customers.

However, Hong Kong government sets up a minimum wage legislation which would appear to be on the rise annually, which means the operation cost will be increased by the staff salaries, making them hard keeping the prices low. It will be a huge factor to consider of 759 if they are to continue to invest in Hong Kong.

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