Political and Legal Environments in International Business

  1. 6.1 Describe political and legal environments in international business

A political system is a set of formal institutions that constitute a government. It includes legislative bodies, political parties, lobbying groups, and trade unions. The principal functions of a political system are to:

  • Provide protection from external threats.

  • Ensure stability based on laws.

  • Govern the allocation of valued resources among the members of a society.

  • Define how a society’s members interact with each other.

Each country’s political system is unique, having evolved within a particular historical, economic, and cultural context. Political systems are also constantly evolving in response to constituent ...

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