Question

Write short notes on.

Political Environment of business organization.

Answer 1

Political environment of business organisation comprises political conditions such as peace and stability, law and order, etc. For example, a situation of political unrest, such as frequent change in the ruling government, also implies a change in the rules and policies of the government regarding production and manufacturing. Such a frequent change in the regulations regarding production discourages investment. Similarly, the opening up of our economy, under the New Economic Policy in 1991, provided business opportunity to many foreign companies.