How Political and Government Trends Influence Businesses

Politics have always been a great issue in every country, as there is always a power to influence and convince each individual. As there are political trends going in and around every country as one can never get rid of it. This political trend gives a big force to every organization, individuals, families and businesses. If a country has a lousy political trend, everyone gets affected by it. As the condition of the market affects the behavior of the consumers and how little assistance it can give to the individuals.

Every business depends on the government. Governments are the ones who set the rules that make every business able to operate and compete with each other. Chaos sets in whenever there is a sudden change the said rules. There should be slow changes and enough time for business to cope up with the change.

Trends in Economy

Trends in economy give big changes to small businesses. Influences in changes of interest rates affects the rates for small business loans. If there is an increase in interest rates then it increases the cost of borrowings. Banks and other financial institutions who are into the business of borrowing of money are the ones mostly affected by the changes in economy, Another situation is when government leaders become so corrupt that investors would no longer want to make invenstment is such a country. That is because political leaders can no longer be trusted.

Legal Trends

There are also changes in legal trends that can affect businesses such as the minimum wage extension under the age of 18. Also catering to disabled people by creating ramps in offices and other areas that would assist these people with disabilities when going up a building or an office. Another kind of example in legal trends is the cyber security. Cyber crimes are becoming rampant nowadays that force businesses to hire relevant personalities and/or implement high tech applications to protect themselves.

Labor Law

With the ongoing political trends, the need to set the leaders' eyes on the benefits of the employees becomes paramount. This law protects the rights of every employee. They must all be clearly defined or stated in this law. Problems on minimum wage, discrimination, number of hours worked and overtime pay must all be clearly addressed.

All kinds of business must have all the necessary documents and must follow what the law says. That is why a lot of all business must comply with what the law is asking, as each and every business is always affected in every form of the policy. If there are new changes then for sure every business is greatly affected by it. The government set the rules and politics is there to guide the business. In clonclusion, I can confidentlay say that every business is always affected by how governments behave.

For further information about politics, government and business you can check Academic Representative of Iranian Students in Australia and New Zealand (ABISA).

This article was published on 11 Aug 2015 and has been viewed 1501 times
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