changes in the government
, regionally, nationally and internationally, which canhave a huge effect on business activity. This can include public spending or internationalrelations. The relationships a country has with others can either open or close markets tothe business.These are closely linked with legal changes, such as consumer protection legislation,environmental legislation, workplace health and safety laws and employment laws.Political factors might include:
The stability of the government
Employment and consumer laws
Environmental protection measures
Foreign trade regulations [tariffs, embargos and quality control]It is important to assess political factors at the regional, national and international level.
Political Opportunities and Threats
Government actions can control business behaviour and affect economic activity.
This is when the government use taxes and expenditure policies to influencethe economy. This can come in a number of forms:
Paid straight from the income, wealth or profit of individuals andbusinesses.