Macro political and legal

factors
By:Chistruga Vladislav
What is the macro-environment?

• The macro-environment is more general - it is the environment in

the economy itself. It has an effect on how all business groups
operate, perform, make decisions, and form strategies
simultaneously.
Political and legal factors

• The market develops according to the political and legal

environment in various areas. This means that every business
needs to be up to date with such forces worldwide in order to be
able to make the right decisions.
Political factors affecting business

1. Environmental Law
2. Health and safety law
3. Competition regulation
4. Regulation and deregulation
5. Tax policy (tax rates and incentives)
6. Government stability and related changes
7. Government involvement in trade unions and agreements
8. Import restrictions on quality and quantity of product
9. Intellectual property law (Copyright, patents)
10.Consumer protection and e-commerce
11.Laws that regulate environment pollution
Political factors affecting business

Political factors can affect businesses by

1. Bureaucracy making the environment more or less
2. Corruption level friendly for business.  Often, there is very
3. Freedom of the press little that businesses can do.  They can
lobby for better laws, but they clearly have
4. Tariffs little to no control over the political
5. Trade control environment.
6. Education Law There are 4 main effects of these
political factors on business
7. Anti-trust law organizations:
8. Employment law •Impact on economy
9. Discrimination law
•Changes in regulation
10.Data protection law
•Political stability

•Mitigation of risk
About legal factors

• Legal factors are external factors which refer to how the law

affects the way businesses operate and customers behave. Product
transportation, profit margins, and viability of certain markets are
all examples of things which may be influenced by legal factors

• Legal factors can decide whether or not there is a business

behind selling a certain product (perhaps drugs, or sharp
objects), and can also affect the mechanisms through
which a company stocks their inventory or interacts with
the customer.
GENERAL EXAMPLES OF LEGAL FACTORS
AFFECTING BUSINESS INCLUDE
Consumer law Employment law
Discrimination law Import/Export law
Copyright law Fraud law
Health and Safety law Pyramid scheme legality