This seminar presentation discusses the political environment and how it influences business. It outlines the key political systems like democracy, republic, monarchy, and communism. It also discusses factors in the political environment that impact business like the structure of government, stability of policies, corruption levels, and various laws and regulations. A stable, efficient political system and consistent legal framework are important for business growth.

2. SEMINAR PRESENTATION
POLITICAL ENVIRONMENT
Political system
Factors influencing business
Laws and regulations
AKHIL MANOHARAN II M.Com 303 STCP

3. • The political factors affecting business are often
given a lot of importance.
• The political system prevailing
in the country decides, promotes
and controls the business
activities of that country.
• A stable, honest and efficient political system is a
primary factor for the growth of business.

4. POLITICAL SYSTEM
• Political system, is the set of formal legal
institutions that constitute a “government” or
a “state.”
• Structure of government, political ideologies,
culture even geographical specialties
influences the political system.

5. TYPES OF POLITICAL SYSTEM
Some of the common political systems around
the world include:
1) Democracy
2) Republic
3) Monarchy
4) Communism

6. 1) DEMOCRACY
A democracy in a more traditional sense is a
political system that allows for each individual to
participate.
• Types of democracy:
 Direct Democracy
 Representative Democracy

7. 2) REPUBLIC
A republic is a political system in which the government
remains mostly subject to those governed. However
any form of government that is not based on heritage
or authoritarian governance can be called as a republic.
It includes:
• Crowned republic
• Single Party
• Capitalist
• Federal
• Parliamentary

8. 3) MONARCHY
In a monarchy, a ruler is not usually
chosen by the voice of the people or
their representatives. Often a
monarch is the head of state until he
or she abdicates or until death. In
many cases a monarch is the final
word in government

9. 4) COMMUNISM
A communist state is based on the ideology
of communism as Marxian or Leninist. A
planned economy is often part of the
governing class, and in many cases resources
are taken and then redistributed to others.

10. POLITICAL FACTORS INFLUENCING BUSINESS
Many political factors have an impact on the business industry.
1) Structure of Government.
2) Stability of government policies.
3) Corruption levels.
4) Foreign policies.
5) Nationalisation .
6) Liberalisation policies.
7) Politics and religion.
8) Laws and regulations.

12. LEGAL ENVIRONMENT
• Different legislative policies have brought the
legal environment to be a major factor to looked
into carefully by all companies.
• The government, in every country, regulates the
business according to its defined priorities.
• Laws and regulations are
different to every countries.
• It also includes International
laws and regulations.

13. • The laws which are passed by the government
for business operation is called legal
environment.
 Companies Act 1956 (2013)
 Consumer Protection Act 1986
Goods and Service Tax 2017
The Factories Act 1948

14.  World Trade Organisation
 International Labour Organisation.
 International Chamber of Commerce
 United Nations Environmental Protection.

15. Legal environment in a country has a
dominating position on all decisions of
organisations. Any change in the political
environment may bring about radical changes
in laws governing the national and
international affairs and also in existing laws.
Therefore, political and legal environment go
together.