Question

How is political environment a relevant factor in decisin making in international business operations?

Answer 1

Answer:

The political environment of the country of operation becomes increasingly important for an internationalizing firm as it moves from exports to foreign direct investment (FDI) as the mode of international market entry.

It refers to the influence of the system of government and judiciary in a nation on international business. The type and structure of government prevailing in a country decides, promotes, fosters, encourages, shelters, directs, and controls the business of that country.

Explanation: