7 Political Factors  that Affect Business

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Businesses can get affected by several factors including political ones. Here are some political factors that affect bussiness.

1

Political Stability

Unrest, coups, and wars can disrupt businesses by creating uncertainty and making it difficult to plan for the future.

2

Government Policy

Businesses need to be aware of upcoming changes in government policy and how these changes might affect them.

3

Trade Policy

The government's trade policy can affect businesses by making it easier or more difficult to import and export goods.

4

Foreign Policy

For example, if a country goes to war with another country, businesses that operate in either country may be disrupted.

5

Bureaucracy

Businesses need to be aware of the bureaucratic hurdles they may face and plan accordingly.

6

Level of Corruption

Corruption can increase the cost of doing business and make it difficult for businesses to compete fairly.

7

International Relations

A country's international relations can affect businesses by creating new opportunities or new risks.