What do you mean by Political Environment?
Political environment in any country at any time is the result of political system, constitutional provisions, party system and the political events which take place in the country from time time to time. Political stability, stable government, party in power, opposition parties, law and order situations, press and media etc., are main reasons of political environment. Favorable political environment is required for the survival and rapid growth of business organizations and for this, political stability is essential.
Business is highly affected due to political environment. This may create problems or this may bring new opportunities to entrepreneurs. Political environment may be favorable or either it may be unfavorable. Businessmen must accept and adjust their plans and policies accordingly because business and politics are inseparable.
Political environment and economic environment are closely connected with each other. Business can not remain unaffected by politics. Unstable political environment affects business adversely.