How the political environment affect the business environment. What are the relationship. why the nation cant control it.... the Political environment is a external environment so business firm cant control it.

1. Sources:-
Nepalese Business environment by P.R.
Pant
www.wikipedia.org
https://www.cia.gov/library/publications/the-
world-factbook/geos/hk.html

2.  Political Instability
 Orientation of Employees
 Political Institution
 Economic Factors
 Political Activities
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3. o Political instability refer to the likelihood of a
government falling and being replaced by
different one.
o One Measure of political instability is the
frequency of changes of government.
o Business including agriculture, commercial and
financial activities can prosper only when there
is a stable government with gradually changing
policies.
o In Nepal, there are multi-party system, where
intra party conflict have created further problem
of political stability.
o Political instability results in decrease in foreign
direct investment, decrease in production level
and damage to infrastructure.
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5. Labor Union
o It is a organization to established to provide
welfare of employee.
o It established to avoid labor exploitation and to
provide welfare of employee.
o Labor union could cause investors to pause.
o It secure the job of employee which is
challenges for the management.
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7. Guided by different political ideology
o Every organization’s employee have their
different political ideology.
o One employee guided by Marxist view point
and another may be guided by congress view
point.
o Different ideology leads to arise conflict which
is challenges for the management.
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9. Contain:
Affect policies related issues
Legislative:
Function:
Top post:
How legislative present problemaffect business:
 Budgeting policy
 Disability of making appropriate policy:
registration , organization and management.
 Can define minimum requirement facilities
working hours, salary etc.
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10.  Can determine import and export policy of raw
material, labor and product.
 Can increase tax, tariff rates, rent, wage,
transportation etc. policy.
Executive:
Function :
Top post:
How executive present problem/affect business
 Lack of implementations/can affect by delay in
implementation.
 Can of use political power in government ‘s
facilities like subsidies
 Corruption
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11. Judiciary:
Function : justice, and punish
Type of court:
Top post:
How judiciary present problem/affect
business.
 Delay in justice of conflicting issues
 Showing corrupted environment in
judiciary.
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13.  Effect on general economic health of an economy.
 GDP
 International trade
 PCI.
 Unethical activities in business.
 Black Market
 Corruption
 Tax Avoiding
 Brain drain.
 Industries are converting/heading in sick
industry.
 Effect in investment.
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14.  Corruption. ( Nepal is corruption free country
this statement itself corrupted.)
 Lack in exercise and power
 Lack of Transparency.
 Creation of Violation. (Unethical activities like
Nepal Bandh, Valley Bandh, Chakka Jam,
Dharna. Bomb blasts, General strike and other
type of agitation have been increasing in
Nepal.)
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16. In business organization there are many
challenges for management. Some challenges
are occur by political problem which we study
earlier.
Although there are many problems of
political environment in business, which are
the challenges for management. The manager
must able to change these challenges into
opportunities.
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