2. POLITICAL ENVIRONMENT
The political environment of the business are the political factors that can affect
the way in which business operate ,the businesses that are present .
According to the business dictionary:
’’the political environment is the government actions which affect the - operations of
a company or business’’.
There actions can be present on several different levels including the local,
state, regional, national and international level.
3. Political factors affecting business
Elections.
Trade control.
Employment law.
Data protection law.
Environmental law.
Tax policy(tax rates and incentives).
Gov. involvement in trade unions and agreements.
Import and exports restrictions on quantity and quality of the product.
Intellectual property law(copyright, patents).
4. Effects of these political factors on
business environment
impact on economy:political situation of a country affects its
economic setting. The economic environment affects the business
performance.
Changes in regulations : governments could alter their rules and
regulations . This could in turn have an effect on a business.
Political stability : lack of political stability in a country effects business
operations. This is especially true for the companies which operations
internationally.
5. • Importance of observing the political
environment.
Firms should track their political environment change in the
political factors can affect business strategy because of the
following reasons.
The stability of a political system can affect the appeal
of a particular local market.
Gov. view business organizations as a critical vehicle for a
social reform.
Gov. actions influence the economic environment.
