how do political factors affect the business?

Case in point, a European Union consisting of countries like France, Germany and Italy where the organizations of these member states can with few legal requirements, these international business have a greater advantage while, Global Interest rates disrupts the level of investments and savings in the economy .In international businesses fiscal policies affects the cost of borrowing. Table of Contents I could not find a comparable study of the UK context. When these international businesses engage in business deals such as importing, salaries and wages payment and exporting they affect the currency .Organization must compare the value of currency in the country they operate in with the standardized dollar currency of trade so as to avoid fluctuation which affect purchasing power and operating cost. See my comparison from Google maps below. In cases where citizens obtained their desired policy outcome, it was in fact due to the influence of elites rather than the citizens themselves: “Ordinary citizens might often be observed to ‘win’ (that is, to get their preferred policy outcomes) even if they had no independent effect whatsoever on policy making, if elites (with whom they often agree) actually prevail.”. Obviously some factors are more stable and more predictable than others, however the potential for change is always there and a continuous scanning of the political landscape can make a big difference when planning a campaign or an international business expansion. Why do these big money donors spend money on political campaigns? • I shall call them the ‘structural way’ and the ‘populist way’. The economic environment affects the business performance. If it happens at all, what are the chances of this being a peaceful, smooth transition? The political environment in a country affects business organizations and could introduce a risk factor that could cause them to suffer a loss. Your IP: 158.69.54.75 Perhaps I’ve reached a certain age and level of self-confidence that makes me less readily conform; I have no qualms about talking about these topics with almost anyone. One significant political environmental factor that influences international business operation is trade agreements. (2010). Payroll Services DIRECT INVESTMENTS 10 That may be true if you consider politics to be solely composed of elections and individuals arguing with each other once they’re elected. Managers must keep a bird’s eye view over political factors. What should I do after Brexit goes into effect? However, in the digital age we live in, they have the potential to be even more disruptive than the structural ones as reactions can be shared and spread online in a matter of minutes and regaining control can be very costly and challenging. Some of the political factors that affect international business include” (Justin Ervin. The basic business knowledge any entity or individual ought to be aware of is that business entities operate in an environment affect by many factors amongst them politics. Regardless of whether a small minority or a large majority of American citizens support a policy, the probability of policy change is nearly the same — approximately 30%. For instance, after the accounting scandals of the early twenty-first century, the United States Securities and Exchange Commission became more focused on corporate compliance and the government introduced the Sarbanes-Oxley compliance regulations of 2002. These three charts summarise how grotesquely larger big money’s influence in politics is. Organizations that have international operations use this type of insurance to mitigate their risk exposure as a result of political instability. Now, while the dispute over Jammu and Kashmir is quite complex and extremely sensitive both for India and for Pakistan, Arunachal Pradesh is an area close to Tibet that is a very tiny fraction of territory when compared to the size of India and China, and while it might have had some strategic military value in the age of traditional warfare, in the age of long distance ballistic missiles and extensive air to ground warfare technology it is puzzling that the two countries still cling to that sliver of territory and feel offended if their perceived rights are not acknowledged. For the prosperity of the economy, the political government in place ought to be free and fair in its distribution of natural resources. For instance, an index of economic freedom ranks countries based on how political interference impacts business decisions in each country. (function() { INTRODUCTION, EXTERNAL FACTORS With regards to information on political issues this is even more important since political issues can very easily become partisan issues and view the facts though the powerful lenses of political ideology. External factors are those factors which are external to the business organization and cannot be controlled by the management. For example, when Orange Telecom, a former telecom provider in the UK, wanted to open retail points in Northern Ireland, they were faced with huge problems because of the sensitivities that their name and slogan, “The future’s bright, the future’s Orange”, might evoke in a land where the two sides of the conflict have long associated each other with the colors orange and green. This could lead to rioting and looting and general disorder, which disrupts the operations of a business. Considered more broadly, what matters about politics is not the stuff that we most often get to see or hear about.

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