Analyze the impact of political and legal factors on business operations. How can businesses adapt to changes in the external environment?
Answer (1)
Political and legal factors affect how a business runs. These include government policies, labor laws, taxes, trade regulations, and political stability. For example, if a government raises taxes or changes labor laws, a business may spend more on operations. Political unrest can also make investors afraid to invest.How can businesses adapt?Stay updated with new laws and government policiesHire legal experts or consultantsDiversify investments to reduce risksAdjust company policies to match regulationsBuild good relationships with the government and local community
