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    Political Environment Finalize

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    charlenealvarez59
    The political environment impacts business operations through governmental activities and conditions. It influences marketability, investments, and decisions. Understanding the political climate is crucial, as changes in policies can favor local businesses or encourage foreign investment. Political stability, government ownership of industries, and import restrictions all shape the business environment and must be considered. Contemporary social issues corporations face include environmental concerns, global problems, and technological impacts.

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    Political Environment Finalize

    Uploaded by

    charlenealvarez59
    30 views2 pages
    The political environment impacts business operations through governmental activities and conditions. It influences marketability, investments, and decisions. Understanding the political climate is crucial, as changes in policies can favor local businesses or encourage foreign investment. Political stability, government ownership of industries, and import restrictions all shape the business environment and must be considered. Contemporary social issues corporations face include environmental concerns, global problems, and technological impacts.

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    The political environment impacts business operations through governmental activities and conditions. It influences marketability, investments, and decisions. Understanding the political climate is crucial, as changes in policies can favor local businesses or encourage foreign investment. Political stability, government ownership of industries, and import restrictions all shape the business environment and must be considered. Contemporary social issues corporations face include environmental concerns, global problems, and technological impacts.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    30 views2 pages

    Political Environment Finalize

    Uploaded by

    charlenealvarez59
    The political environment impacts business operations through governmental activities and conditions. It influences marketability, investments, and decisions. Understanding the political climate is crucial, as changes in policies can favor local businesses or encourage foreign investment. Political stability, government ownership of industries, and import restrictions all shape the business environment and must be considered. Contemporary social issues corporations face include environmental concerns, global problems, and technological impacts.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 2

    POLITICAL ENVIRONMENT OF BUSINESS ENTERPRISE

    What is political environment in business?


    - The political environment in business encompasses the governmental activities and the
    political conditions that impact the operations of a business. Some of the political
    factors include political stability and employment laws.
    Business Enterprise – A business enterprise is any type of operation that is involved in providing
    goods or services with the anticipated outcome of earning a profit.
    Relationship between Business and Government
     Responsibility
     Accountability
     Duty

    Importance of political environment


    - The political environment is crucial for international businesses, as it can affect
    marketability, investments, and share price valuation.
    - The level of involvement in a foreign market determines the need for monitoring the
    political climate of the countries where the business operates.
    - Understanding the political environment is essential for businesses to plan their
    operations effectively and make informed decisions.

     Changes in government policies and attitudes towards foreign businesses can lead to
    changes in the business environment. For instance, a government may introduce new
    policies that favor local businesses, making it more difficult for foreign companies to
    operate in the country. Conversely, a government may encourage foreign investment by
    offering incentives and reducing barriers to trade.
     Government ownership of economic activities is still customary in some countries lacking a
    well-developed private sector. In such cases, the government may own significant shares of
    companies or operate industries directly. This can impact the company’s operations and
    decision-making processes.
     Political Stability: Investors should be aware of the stability of the political environment in
    the target country. A loss of confidence in the political environment could lead to a
    company having to reduce its operations or withdraw altogether. Frequent changes in
    regime are often indicators of political instability.
     Factors affecting political instability
    • Civil war
    • Declaration of emergency in the country
    • Changes in the form or structure of administration of government.
     Import Restrictions: Products and investments seen as undesirable or a threat to local
    industry may face import restrictions. Governments may impose quotas, tariffs, or other
    barriers to trade to protect local industries or to promote self-sufficiency. These restrictions
    can significantly impact the operations of foreign companies in the country.

    CONTEMPORARY SOCIAL ISSUES


    Contemporary social issues- corporations deal with various social issues and problems, both
    directly related to their operation and not. It would not be possible to satisfactorily describe all
    of the social issues faced by business.

    3 Contemporary Social Issues


    • Environmental issues
    • Global Issues
    • Technological issues

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