Political and legal environment of business for many businesses, non-market forces are as significant as market factors: the interaction between government institutions, elected officials, policy-oriented activists and ngos shape the legal environment for firms in ways that have direct implications for their bottom line.
Companies also study environmental, legal, ethical and demographical factors the political factors affecting business are often given a lot of importance several aspects of government policy can affect business. The political system of the country also has an influence on political environments as defined by robert dahl, a political system is a persistent pattern of human relationship that involves, to a significant extent, control, influence, power, or authority.
22 political and legal factors that impact international trade learning objectives is there a well-established legal environment both to enforce policies and rules as well as to challenge them how transparent is the government’s political, legal, and economic decision-making process while any country can, in theory, pose a risk in. Government actions which affects the operations of a company or businessthese actions may be on local, regional, national or international levelbusiness owners and managers pay close attention to the political environment to gauge how government actions will affect their company.
The political / legal / regulatory environment is often a direct consequence of the political parties in power, which represents the popular opinion of the citizens of the region if the citizens are, for example, pro-big business then probably taxation will be modest and there will not be a lot of stringent rules about environmental.
Increasingly in the 21st century, washington politics, precedent-setting court decisions and various widespread social movements make an awareness of the political and legal issues that impact. Political-legal environment is a collection of factors, such as the general state of politics, the degree of politicalisation of business and economic issues, the level of political morality, the law and order situation, political stability, the political ideology and practices of the ruling party.
Most issues in the legal/political environment centre around the following:- i) institutional environment - made up of political, social and legal ground rules within which the global marketer must operate ii) property rights - patents, trademarks. This is “political and legal factors that impact international trade”, is there a well-established legal environment both to enforce policies and rules as well as to challenge them how transparent is the government’s political, legal, and economic decision-making process while any country can, in theory, pose a risk in all of these.