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 ...