Government participation in trade unions Import limitations on quantity and quality of the product Legislation that manages environment pollution Consumer e-commerce and protection Effects of political factors on businesses Government changes in their rules and regulations could have an impact on business. The political condition of a country affects its commercial setting.
Identify the different legal systems. Understand government-business trade relations and how political and legal factors impact international business. Why should businesses care about the different political and legal systems around the world?
To begin with, despite the globalization of business, firms must abide by the local rules and regulations of the countries in which they operate.
Until recently, governments were able to directly enforce the rules and regulations based on their political and legal philosophies. The Internet has started to change this, as sellers and buyers have easier access to each other.
Nevertheless, countries still have the ability to regulate or strong-arm companies into abiding by their rules and regulations. As a result, global businesses monitor and evaluate the political and legal climate in countries in which they currently operate or hope to operate in the future.
What Are the Different Political Systems?
The study of political systems is extensive and complex. A political system The system of politics and government in a country; it governs a complete set of rules, regulations, institutions, and attitudes.
It governs a complete set of rules, regulations, institutions, and attitudes. There are more than thirteen major types of government, each of which consists of multiple variations.
At one end of the extremes of political philosophies, or ideologies, is anarchism A political ideology that contends that individuals should control political activities and public government is both unnecessary and unwanted.
In reality, neither extreme exists in its purest form. This combination is called pluralism A political ideology that asserts that both public and private groups are important in a well-functioning political system. Although most countries are pluralistic politically, they may lean more to one extreme than the other.
In some countries, the government controls more aspects of daily life than in others. While the common usage treats totalitarian and authoritarian as synonyms, there is a distinct difference. For the purpose of this discussion, the main relevant difference is in ideology. Authoritarian governments centralize all control in the hands of one strong leader or a small group of leaders, who have full authority.
These leaders are not democratically elected and are not politically, economically, or socially accountable to the people in the country.Article shared by. 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.
Business environment is therefore, the total of all external forces, which affect the organization and the business operations (Kotler &Armstrong ). These forces include customers, creditors, competitors, government, socio-cultural organizations, and political parties, national and international organizations.
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.
The legal environment of a business includes the system of laws and regulations to which a business is subject, as well as the related enforcement agencies and the judicial system.
Since she is. The political-legal environment provides a host of laws and regulations that affect the business affairs. It provides opportunities, threats and challenges for the business enterprises.
The Government interacts with business enterprises at the local level, State level and the Central level and regulates their functions through various rulings. The Political / Legal / Regulatory Environment can be simply described as the laws and regulations that business has to follow in order to make sure the business owners do not get arrested, or have the business fined for noncompliance of some regulation.