Political Environment

Topics: Government, Autocracy, Democracy Pages: 3 (820 words) Published: December 7, 2014
The political environment in a country affects business organizations and could introduce a risk factor that could cause them to suffer a loss. The political environment could change as a result of the actions and policies of governments at all levels, from the local level to the federal level. Businesses need to be prepared to deal with the fallout's of government politics locally and internationally. Let’s first define Political environment, there are several factors that creates an Inter-linkages occurring in many ways, for example:

• Political decisions inevitably affect the economic environment. • Political decisions also influence the social and cultural environment of a country. • Politicians can influence the pace at which new technologies appear and are adopted. The political environment is one of the less predictable elements in an organization’s business environment. The fact that democratic governments have to seek re-election every few years has contributed towards a cyclical political environment. The political environment in its widest sense includes the effects of pressure groups who seek to change government policies. One important factor to consider in the political environment before considering the impacts is their Political Systems. There are different possible political systems. An open system of government is democratically elected by the population of a country. Totalitarian systems of government occur where power derives from a select group (e.g., communism) or based on the interests of sectional groups (often military-based). The idea that autocratic regimes have an advantage in economic development was once quite fashionable. The plausibility of such a notion lies in the advantages such regimes were said to have in forcing through development in the long term. An alternative view is that democracy is likely to foster economic development. Corruption remains a barrier to economic development in many countries. Some companies may...
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