P6 Describe How Political, Legal and Social Factors Are Impacting Upon the Business Activities

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The political environments which include political stability , government support for different types of organisation, fiscal, direct support, providing infrastructure, enhancing skills of the working population, organisations to support businesses and membership of international trading communities. Political factors can affect a business in the following ways: Political stability affects a business because taxation, legal framework, policies and laws are all under threat of drastic changes. Government support can affect a business by whether or not they fund the business and introduce subsidies. For example if they subside farmers. Fiscal policies are the policies that determine taxes and interest rates by the government depending on public expenditure. Direct supports are where they have to support a specific range of business services. Providing infrastructure is the government’s responsibility to provide all necessary things for a business to run which they are not responsible for, such as water, roads, electricity, phone lines etc. Enhancing skills of the working population is the government’s responsibility to ensure all of the upcoming population has the right to an education and ensure all youngsters are being educated to a good standard. Organisations to support businesses and membership of international trading communities where the government has an agreement with foreign countries across the world to form a community which allows members within the countries to trade with each other. For the organisation to achieve its purpose is to recruit members of staff, product design, transport of goods, and promotion of products of the organisation. The different types of influence of legal environments are providing framework for business, protecting consumers and employees and ensuring fair and honest trading. The legal factors affecting businesses are laws and guidelines put in place by the government and the associations Providing framework...
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