Political Factors

Political factors refer to the influence of government actions, policies, and stability on businesses or the economy. This includes laws, regulations, tax policies, trade agreements, and political stability or unrest. These factors can affect how organizations operate, their costs, and market opportunities. For example, government decisions on taxes or trade tariffs can increase expenses or restrict access to markets. Political factors are important for understanding the environment in which businesses function and help predict potential risks or opportunities related to government changes or political climate.