New Gold Inc,a mining company,has signed an agreement to share mine-revenue with two Indian bands and BC provincial government. Based on PEST analysis we learned in class,New Gold is effected by a political factor.Because of the terms on Government of Canada ,the Government is committed to providing meaningful opportunities to first nations,which means it may be supposed to cooperate with them.To this end,New Gold,as a multinational company ,ought to do as what the govern says and supports those aboriginal people.External industry force also has an impact on it according to Business Model Environment since first nations become its supplier which provide land.

Not everything related to policies is bad.No one can deny it is a fair deal that the  company pays taxation for its mining operations on the aboriginal people’s territory.As for  the govern,it acts as a go-between and guarantees the equity of this trade.Besides,about 25% of the mining workforce is Aboriginal,which solves both the recruitment and employment problems.New Gold might be seemingly influenced by a political factor,but it also brings an opportunity.The firm can mine in those resourceful territories and earn a large amount of profit as well as establishing its reputation and giving a morally good impression to the public.Therefore,the agreement is indeed a double-win.