How Political Decisions Can Affect a Business.

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Business Level 3

Unit 1 – P6

P6 – Political Factors

Politicians make important decisions. At nation level the UK is governed by the political party that secures the most members of parliament in a general election. The ruling party is led by prime minister who appoints the cabinet of senior ministers in charge of the key areas of government – for example, education, health, industry and so on.

At international level, Britain is a member of the European Union. This body makes political decisions that increasingly affect what can be done within member states, at local level; councils are the elected representatives of their populations and make decisions about local issues on their behalf.

Political Decisions involve making choices that affect large numbers of people and businesses. The choices made by politicians, for example, in creating new laws, will tend to favour some groups at the expenses of others. Sometimes these decisions favour business, for example, in the granting of a subsidy or an exemption from paying taxes (not having to pay them). At other times political decisions restrain business, for example, when business taxes are raised or businesses are stopped from carrying out given activities.

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If the political system is stable and they have everything all figured out they will know what is best for the economy. Money is almost the biggest issue every where a stable government can help get what the people need and want from the chosen business which is the Post Office.

Periods of the political stability favour business. A political party is usually elected (at national level) to office for up to five years. Once elected, it will seek to put its manifesto (plans) into action. Plans are made public. This helps business planning. Businesses are able to use ...

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