THE IMPACT OF POLITICAL INTO BUSINESS

 The political environment can impact business organizations in many ways. It

could add a risk factor and lead to major loss. You should understand that
the political factors have the power to change results. It can also affect
government policies at local to federal level. Companies should be ready to
deal with the local and international outcomes of politics.
 Increase or decrease in tax could be an example of a political element. Your
government might increase taxes for some companies and lower it for others.
The decision will be effect on your businesses. So, you must always stay up-to-
date with such political factors. Government interventions like shifts in interest
rate can have an effect on the demand patterns of company.
 The political environment is perhaps among the least predictable
elements in the business environment. A cyclical political
environment develops, as democratic government have to pursue re-
election every few years. This external element of includes the
effects of pressure groups. Pressure groups tends to change
government policies.
 Corruption is a barrier to economic development for many
countries. Some firms survive and grow by offering bribes to
government officials the success of these companies are not based
on the value they offer to consumers.
3 WAYS POLITICS IMPACT BUSINESS
1. POLITICS AND BUSINESS TAXES
-individual and businesses that have higher yearly earnings are typically taxed at higher rate.
Different political parties might campaign on platform with promises of lowering tax for big
businesses, while the opposing party might be vying for middle class voters. As a business owner,
you need to discern the rhetoric and look at political records. Remember that business have to pay
state taxes, federal taxes, and sometimes local taxes if they are located in the city. A small reduction
in federal business taxes can be really good for a company while a major increase might lead to a
business’ ultimate downfall.
2. EMPLOYEE PROTECTIONS AND COVERAGE
- business owners had a lot more freedom about the kind of healthcare coverage they were
required to provide to full-time workers. Individual can vote to increase minimum wage, forcing
business owners to pay workers for performing the same duties. All of this things have to do with
politics. If you are expecting your business to do well in the incoming years you have to know
what changes the government can take, including various bills and laws that are being lobbied for.
3. INTERNATIONAL BUSINESS IMPACT
- business is not done in a bubble. Sure, your company may be locally based and have mostly
customers who live within the region, but most company owners dream of eventually having a
global impact.

* Business and Politics are incredible connected. Some business owners become
influential and well known to go into politics. Sometimes the business world collide when it
comes to effort to create more jobs and to stimulate the company. Politicians can also go
up against business when companies are accused of polluting or working against the
interests of the citizens.