Political environment

The origin must react to the attitude of the government. The organisation must react to the new attitude of the government of the day. The government is the nation’s largest consumer, employer and investor and any changes in the spending priorities will have a significant impact on a business.

Political influence will include legislation on trading pricing, dividends tax, employment, privatisation, development of free market influences and unemployment.

Economic forecasts are normally prepared on the basis that the existing government policies continue. Other factors are political stability in a country, which will influence the rate of investment in the country.