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National 5 External factorsBusinesses can’t control external factors but must respond to them. These political, economic, social, technological, environmental and competitive factors are represented by the acronym PESTEC.
Part of Business management Understanding business
video Videoquiz Test
Political factorsPolitical factors involve the decisions and laws that governments make. These include:
Governments can raise or lower corporation tax, which will impact on profits. They can also affect businesses by increasing value-added tax on products or business rates. They can bring in new laws like the National Minimum Wage, which impacts on profits and employment rights. Governments can also introduce new health and safety legislation meaning that a business has to change the way it works, for example by training its staff. The vote to leave the European Union, also known as Brexit will have an impact on the way UK firm’s trade with the EU single market. The impact may be negative (a loss of trade with EU customers) or positive (less restrictions placed on firms by EU lawmakers). For example, Scottish fishermen hope that leaving the EU will help boost their industry. On the other hand UK-based car manufacturers are worried about losing out on free access to wealthy customers in France and Germany.
National 5 Subjects
What are the political factors affecting business environment?Below, is a list of political factors affecting business:. Bureaucracy.. Corruption level.. Freedom of the press.. Tariffs.. Trade control.. Education Law.. Anti-trust law.. Employment law.. Which of the following does not include in the political environment of business?The exchange rate is not a political factor because it is an economic factor.
Which of the following is not a part of political environment?Population growth rate is not a political factor that impacts external macro-environment.
What is included in political environment of business?Political environment includes political conditions such as general stability and peace in the country and the attitude of elected government towards business. A stable political system can make business-friendly decisions that promote local businesses and attract foreign investors. Was this answer helpful?
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The political factors impacting on the organization business environment which not included
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