The political environment

The political environment - Thepoliticalenvironment

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The political environment The political environment can foster or hinder economic developments and direct investments. This  environment is ever-changing. As examples, the political and economic philosophies of a nation's  leader may change overnight. The stability of a nation's government, which frequently rests on the  support of the people, can be very volatile. Various citizen groups with vested interests can  undermine investment operations and opportunities. And local governments may view foreign firms  suspiciously. Political considerations are seldom written down and often change rapidly. For example, to protest  Iraq's invasion of Kuwait in 1990, many world governments levied economic sanctions against the  import of Iraqi oil. Political considerations affect international business daily as governments enact  tariffs  (taxes),  quotas  (annual limits),  embargoes
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