The political environment refers to the actions taken by the government, which potentially affect the daily business activities of any business or company. According to the Law Dictionary, such actions occur on a local or international scale depending on the governmental institution's authority.Continue Reading
When a political institution passes a new law, businesses must consider the impact it will have on their operations. In some instances, companies may need to develop new strategies or processes in order to comply with initiatives imposed through legislative laws. For instance, the Waste Electrical and Electronic Equipment regulations, which are designed to reduce electronic waste going to landfill sites, may force companies to change elements of their supply chain and manufacturing process in order to reduce the amount of waste produced.
The political system of the country also has an influence on political environments. As defined by Robert Dahl, a political system is a "persistent pattern of human relationship that involves, to a significant extent, control, influence, power, or authority." Political systems such as democracies tend to protect the rights of individuals and organizations more than oppressive totalitarian and dictatorship political systems do. Consequently, the political environments in democracies tend to conform to higher standards of regulation and efficiency than the environments of opposing political systems.Learn more about Types of Government
National unity refers to a type of government formed by a group of parties, generally during times of emergency. These governments are said to be unified by a love of country rather than by political affiliation.Full Answer >
Critics of communism allege that it raises false hopes of a perfect future, gives the government excessive authoritarian powers, limits human rights and individual liberties, hampers economic prosperity and damages the environment.Full Answer >
Coercive federalism involves a strong centralized national government that exercises strict control over its states through the use of mandates or orders, often without providing the funding to carry out those requirements. In order to receive grant funding from the federal government, the states have to carry out the mandates first. This is a form of governance that the United States has followed on some issues since the 1960s, such as the environment and publicly funded education.Full Answer >
A confederal government is a form of government in which sovereign states delegate power to a centralized government. The central government is weaker than the states, and states can choose to follow the lead of the central government or not. The powers of the central government are typically limited to defense and foreign commerce.Full Answer >