Example of political factor affecting Business operations and strategic

conditions
 Nike has been very fortunate as the government of the US have formulated such
policies that will foster the growth of businesses. The company is enjoying stable
currency and low-interest rate conditions along with very competitive tax arrangements
that help the company in advancing growth. US government has taken initiatives with
respect to transparency in the global value chain and Nike has greatly benefited from
this.
However, Nike is facing hard times in its outsourced manufacturers in other regions like
Indonesia, Thailand and Vietnam where there is an increase in political unrest.

 Gazprom, the largest energy producer in Russia, and exports oil and natural gas to
Europe is at the center of the Ukrainian crisis, as its both majority controlled by the
Russian government, and supplies the commodities that western powers are
threatening to put sanctions on.
 Public Power Corporation is essentially the Greek power monopoly. But this monopoly
comes at a cost. The Corporation is also 51% owned by the Greek government, allowing
the government to use it for promoting social and economic policy instead of seeking
out maximum shareholder returns.
 The Greek financial crisis: The Greek financial crisis, which started in 2010, was arguably
caused by the bad political decisions of the Greek authorities, which spent money
excessively, engaged in tax avoidance and kept interest rates low for too long, leading to
inflationary pressures. As a result, 50 percent of under-25 year olds in Greece became
unemployed, deprivation was commonplace and riots took place throughout the
country.
 The Arab Spring: The Arab Spring began in June 14, 2011 in Tunisia, and swiftly spread
throughout the rest of the Middle East to countries such as Egypt, Yemen, Libya and
even Saudi Arabia. There was an immediate backlash from authorities throughout the
region, with numerous rash political decisions made to oppress those revolting. The
Arab Spring is estimated to have cost the region $600bn or six percent of its GDP
between 2011 and 2015.

 In response to Brexit-
1.  Sony decided to maintain a strong presence in the UK but moved its EU headquarters to
the neighboring Netherlands.
2. Jaguar Land Rover expecting important Brexit disruptions for its value chain, has simply
decided to shut down their four UK plants to cope with the fall in demand and looming
concerns around the possibility of a no-deal Brexit.
3. In the UK, a number of banks including Barclays, Goldman Sachs, and HSBC
have transferred a share of their activities and staff to Paris and the Frankfurt.
4. Dyson, although it claims it has nothing to do with Brexit, is shifting its headquarters and its
center of gravity to Singapore, hoping to capitalize on the growth of the region.