Politics

Political environment is

• political parties and the relationships between them

• the attitude of different businesses to government

• government actions that influence the operations of business

• set of rules and regulations within the organization

What ideologies do you know?

• Perfectionism, socialism and modernism

• Communism, capitalism and socialism

• Colonialism, capitalism and socialism

• Radicalism, racism and communism

What are the reasons for government protection?

• Nurture local businesses; balance exports and imports

• Boost economy; increase competition

• Lower unemployment

• Increase quality products

Some governments encourage FDI because

• FDI nurtures local businesses and economy

• FDI brings funds and skills into their countries

• FDI decreases competition in the country

• FDI protects declining industries

Which is not a favorable political factor?

• tax incentives

• tariffs

• political stability

• industrial parks

Government attracts FDI by

• providing incentives, industrial parks, or less regulations

• providing tax incentives to local firms and businesses

• increasing taxes to local businesses

• more regulations

Negative Political Factors are

• terrorism, tax incentives, political instability

• sanctions, political stability, wars

• coup, political instability, embargo

• industrial parks, tariffs, political stability