Big news, American government shutdown on October 1st

As Senate disagreed with the new health law, there was no new budget sent to government. Therefore, most federal departments except security and the army were closed.

As the USA plays an important role in the international business market, this event gives a huge effect not just on the political area, but also in global business. As most departments shut down, almost all licenses and legal documents within the application processing will be delayed, and this will stop many business activities within or out of the country. For example, some part of international business will be paralyzed because there are no customs officers. In other words, many import goods cannot go into USA, and a huge amount of export goods cannot be shipped to other counties, and this will cause many companies to lose a huge amount of money. Moreover, millions of federal workers will be furloughed without pay. When they have no income, they have less purchasing power and this directly affect the business market. Besides, the market may become disordered as a result of the lack of government supervision.

Within this event, I clearly see that politics is an important external factor for business. As the American government shuts down, the business world faces so many new threats and is damaged.

http://online.wsj.com/article/SB10001424052702304373104579107051184641222.html?mod=trending_now_3#articleTabs%3Darticle

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