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30 Examples of Political Factors

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Political factors are government related influences on the strategies of businesses and other organizations. This includes political processes such as protests and elections that can create uncertainty and disruptions. The following are common examples of political factors.
Business Regulations
Competition Laws
Consumer Protection
Corruption
Cronyism
Declarations of Emergency (e.g. forced shutdown of private businesses)
Elections
Environmental Regulations
Funding Grants
Government Interventions in Markets
Government Shutdowns
Government Spending
Government Stability
Immigration Policy (e.g. ability to hire foreign talent)
Infrastructure Policy
International Disputes
Labor Law
Non-tariff Trade Barriers
Permits & Licenses
Political Stability
Protests
Red Tape
Regional Stability
Rights & Freedoms
Safety & Security
Strike Actions
Subsidies
Tariffs
Taxation
War & Conflict

Political Factors in Business

Political factors have a significant impact on business. Some factors such as low taxes are broadly stimulative for all businesses. It is also common for political factors to be negative for one business but positive for another. For example, an ecommerce site that booms during a government shutdown of physical retail locations. Likewise things like red tape can be mostly negative for business but some businesses may view burdensome regulations as a positive because it prevents new competitors from entering their market. The following are common political factors in business.

International Factors in Business

The actions of foreign governments and general political conditions in other countries can also impact your business. This includes large scale events such as war, conflict, trade disputes or government instability. International factors can also include compliance costs, trade obstructions or unfair advantages given to foreign competitors by their governments.

Secondary Impacts

Political factors have secondary impacts. In particular, economic factors are largely shaped by political processes. For example, governments can greatly influence things like credit conditions, exchange rates and interest rates that have a massive impact on the economy.

Impacts vs Risks

Political factors can include the current state of politics and political risks that are the potential for future impacts.
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External Factors

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