Political factors

Definition

Political factors are elements related to government policy and political decisions that influence the economic environment within which international political economy operates. These can include laws, regulations, government stability, and foreign policies that impact global economic trends and relations.

Related terms

Trade Policies: Regulations set by governments to control international trade, influencing how goods and services move across borders.

Economic Sanctions: Penalties applied by one or more countries against another country or economic entity to influence political change or punish undesirable actions.

Foreign Direct Investment (FDI): Investments made by a company or individual in one country in business interests in another country, often influenced by political stability and regulatory environments