Political Legal Environment Example. Change in tax rate is one of the best examples of how a political environment can affect the business. A political system is basically the system of politics and government in a country. Political Environment forms the basis of business environment in a country. POLITICAL ENVIRONMENTIt refers to Public Institutions.
Political and legal environments focus on the possibility for a company to easily enter or not a given country or will the company face political and legal barriers. In the last years remarkable changes have been taking place in the ideologies of many countries. There are four major bases for legal systems. In 2018 President Donald Trump had a trade war with China. The political environment of a country is influenced by the political organizations such as philosophy of political parties ideology of government or party in power nature and extent of bureaucracy influence of primary groups etc. 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.
There are four major bases for legal systems.
This external element of business includes the effects of pressure groups. Chinas different set of political and legal guidelines made Google choose to discontinue its mainland Chinese version of its site and direct mainland Chinese users to a Hong Kong version. He is of the view that unfair trade practices by China are responsible for the increase in the US trade deficit the theft of intellectual property and the forcible transfer of American technology. While marketers use essentially the same strategic elements the 4 ps to market their products the environment PELFREC plus geography of different markets countries affect how these elements can be used. Political Environment is the state government and its institutions and legislations and the public and private stakeholders who operate and interact with or influence the system. Some examples of these practices include forming joint-ventures expanding your investment base licensing your productsservices or political bargaining through lobbying.