Quick Answer: What Political And Economic Factors Influence Policy Decisions?

What are social political and economic factors?

Political factors relate to how the government intervenes in the economy.

Specifically, political factors have areas including tax policy, labour law, environmental law, trade restrictions, tariffs, and political stability.

Economic factors include economic growth, exchange rates, inflation rate, and interest rates..

How does political environment affect marketing?

The tourism businesses must constantly assess the marketing environment. It is crucial for their survival and achievement of their long-term economic goals. … Political risks are any changes in the political environment that may adversely affect the value of any firm’s business activities.

How does political instability affect economic growth?

Regarding the channels of transmission, we find that political instability adversely affects growth by lowering the rates of productivity growth and, to a smaller degree, physical and human capital accumulation.

What factors influence public policy?

The Policy Process is influenced by many factors including:Knowledge and innovation:Social, political and economic context:Legal framework:Specific events, especially traumatic events that demand a political response. … Institutional influences:External influences:

What are the factors affecting political environment?

These changes can be economic, legal or social and can include the following factors: Tax and economic policies: Increasing or decreasing rate of taxes is a good example of a political component. Government regulations may raise the tax rate for some businesses and can lower the same for others due to specific reasons.

What are the 3 main factors of production?

There are three basic resources or factors of production: land, labour and capital. The factors are also frequently labeled “producer goods or services” to distinguish them from the goods or services purchased by consumers, which are frequently labeled “consumer goods”.

What are the economic factors affecting business policies?

Some examples of economic factors affecting business:Interest rates.Exchange rates.Recession.Inflation.Taxes.Demand / Supply.

What is an example of an economic factor?

Economic Factors are the factors that affect the economy and include interest rates, tax rates, law, policies, wages, and governmental activities. These factors are not in direct relation with the business but it influences the investment value in the future.

What are the factors affecting economic growth?

Six Factors Of Economic GrowthNatural Resources. … Physical Capital or Infrastructure. … Population or Labor. … Human Capital. … Technology. … Law. … Poor Health & Low Levels of Education. … Lack of Necessary Infrastructure.More items…•

What are the 4 factors of economic growth?

Economic growth only comes from increasing the quality and quantity of the factors of production, which consist of four broad types: land, labor, capital, and entrepreneurship. The factors of production are the resources used in creating or manufacturing a good or service in an economy.

What are the political factors affecting business?

Governments can raise or lower corporation tax , which will impact on profits. They can also affect businesses by increasing value-added tax on products or business rates. They can bring in new laws like the National Minimum Wage , which impacts on profits and employment rights.

What are the three economic factors?

Economists divide the factors of production into four categories: land, labor, capital, and entrepreneurship. The first factor of production is land, but this includes any natural resource used to produce goods and services. This includes not just land, but anything that comes from the land.

What are social and economic factors?

Social and economic factors are drivers of the conditions in which people live, learn, work, and play. Factors, such as employment, community safety, income, housing, transportation, educational attainment, social support, and discrimination account for roughly 40% of all health.

What are the social factors affecting business environment?

Some examples of social factors that affect retail businesses include:Acceptance of internet commerce.Advertising preferences.Age distribution.Buying habits.Comfort with technology.Customer service expectations.Disposable income levels.Education level.More items…

What are the 7 factors of production?

Factors of ProductionLand/Natural Resources.Labor.Capital.Entrepreneurship.