Political environment of the international business is the set of governmental institutions. Political parties and organisations that are the expression of the people in the nations of the world. The political environment varies from country to country. It is very important to understand a particular government’s actions with respect to taxes, dilution of equity control and expropriation. Following factors constitute the political environment of the countries:
(i) Form of government and political party system
(ii) Political ideology and role of government
(iii) Political stability
(iv) Political risks including confiscation, expropriations, nationalisation and domestication.
Political environment of the international business is the set of governmental institutions. Political parties and organisations that are the expression of the people in the nations of the world. The political environment varies from country to country. It is very important to understand a particular government’s actions with respect to taxes, dilution of equity control and expropriation. Following factors constitute the political environment of the countries:
(i) Form of government and political party system
(ii) Political ideology and role of government
(iii) Political stability
(iv) Political risks including confiscation, expropriations, nationalisation and domestication.