The political environment can affect a business either positively, or negatively, depending on the prevailing situation in a country. It mainly forms the external factors - which are part of the macro-environment, control of which is beyond the ability of human beings.
These factors touch on the way politics are conducted in a country, which directly reflects on what is happening within the government itself.
This means that a democratic country will accord freedom to its people to vote for a government which has their interests at heart, and thus business will thrive - owing to the good policies the government implements.
On the other hand, a dictatorial government will not earn the respect of its citizens - leading to economic as well as political instability and uncertainty.
Even though such a government will eventually go, businesses suffer a lot during the government's tenure, since they are not sure of their future. This underlines the importance of a democratic government to a country and to business.
Needless to say, once a country is stable, more investment opportunities will be realised, thus attracting more and more investors. This will reflect positively and directly on local businesses, as citizens will be able to have full confidence in them.
Business success depends on politics to a high degree, and in many ways. Politicians are usually the people controlling the operations of a government, and will decide which countries to trade with, as well as on setting the trading conditions.
This means that, if a certain business or its owners are not on good terms with the politicians, then they will suffer.
Furthermore, the rules that govern and regulate the manner in which trade is conducted are enacted by the politicians - thus good relations are needed between stakeholders in the business sector and politicians, to facilitate success.
These factors touch on the way politics are conducted in a country, which directly reflects on what is happening within the government itself.
This means that a democratic country will accord freedom to its people to vote for a government which has their interests at heart, and thus business will thrive - owing to the good policies the government implements.
On the other hand, a dictatorial government will not earn the respect of its citizens - leading to economic as well as political instability and uncertainty.
Even though such a government will eventually go, businesses suffer a lot during the government's tenure, since they are not sure of their future. This underlines the importance of a democratic government to a country and to business.
Needless to say, once a country is stable, more investment opportunities will be realised, thus attracting more and more investors. This will reflect positively and directly on local businesses, as citizens will be able to have full confidence in them.
Business success depends on politics to a high degree, and in many ways. Politicians are usually the people controlling the operations of a government, and will decide which countries to trade with, as well as on setting the trading conditions.
This means that, if a certain business or its owners are not on good terms with the politicians, then they will suffer.
Furthermore, the rules that govern and regulate the manner in which trade is conducted are enacted by the politicians - thus good relations are needed between stakeholders in the business sector and politicians, to facilitate success.
