Political-Legal Business Environment

Political-Legal Business Environment

The political-legal business environment has a long storied history of evolution.

This changing environment evolved over hundreds and thousands of years. Adam Smith’s invisible hand theory shaped our business environment into what it was twenty years ago. The last twenty years the political-legal business environment placed it’s hand into all business environments with more taxes, policies, and regulations resulting from increased involvement by special interest groups and catastrophic political events. Other business environments have their influence with the political-legal business environment like a game of tug of war. The future of the political-legal business environment is unknown and unpredictable. The environment will change as business laws become transparent, stronger and enforceable.

The political-legal environment has experienced changes globally, regionally, nationally and locally in the past.

Armed conflict had reshaped the political-legal environment with establishment of new organizations and protection of self-interest. During the twentieth century environmental concerns played a leading role in the political-legal environment. Establishing the Clean Air Act in the 1970’s, Environmental Protection Agencies denial of global commerce due to higher standards and more regulations. The political-legal environment has been reactive to all business environments. Robert Crandall stated, ”pollution reduction was more effective in the 1960’s, before there was a serious federal policy.” Is he saying that the political-legal environment not be involved, does business environments police itself? We’ve had state-run business in many countries to include the U.S. where the government owns and regulates an industry leasing the right to sell.

The present conditions have resulted in more political-legal involvement.

Perception indicates the government is a result of successful preservation of the environment and pollution reduction. The political-legal environment’s previous involvement under review and effectiveness determined. The U.S. is experiencing a political challenge that will decide the role of the government in the future. Battles on taxes, social responsibility, spending, free markets and many more issues are effecting the political-legal environment and effected by other business environments. State-run business has declined globally but more regulations, taxes and standards have populated industry across each nation. Catastrophic political-legal events like oil spills off the U.S. have caused increasing interest environmentally and more regulation. The state of the economy generates more political-legal involvement. Dissolving conflicts and new conflicts globally and regionally have changed alliances and abilities to conduct foreign business. Fear of China’s foreign influence and influence of foreign countries in China will dictate the political-legal environment as China opens its industrial capabilities to the world. The technology environment has influenced the political-legal environment when controversial resources become available such as unmanned aircraft use by local governments and against our enemies, cloning and the challenge of replicating life, ability to remote access traffic, ATM, and other camera’s, telephonic conversations, and many more technological advances. The political-legal environment and will continue to play a role in technology as it advances.

Political-legal business environment is intertwine with all business environments.

It’s been changed by other environments and will change environments. One thing remains the political-legal business environment will be one step behind the other environments, reacting to their current environment. The political-legal environment is complex with layers and has grown in size. The future of the political-legal environment is uncertain and will remain so. A fragile global economy, constant armed conflict, emerging foreign influences, environmental and technological concerns are just a few of the issues the environment will deal with in the next 10 years. The amount of influences are too vast. These are just a few that are in the meat grinder today.  

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