How will the political environment affect the purchasing pro

How will the political environment affect the purchasing process?

Solution

In business environment, we take political environment as the part of the external environment to the business. It impacts a business on many ways. We can see the newspaper where we get the information that how a political party or a top management of a company try to build a mutual beneficial relationship on many fronts. Here , political funding is one of the key aspect for them. One gets tax exemption , more contracts , favorable business environment etc.

A government regulates the business , which has some political influence like Democrat , republicans, Congress , Marxists etc. Even , a government make a rule that a company might get a permission from the appropriate authority then only critical resources or export or import will be excuted. It might be politically influenced or biased too. For example : Trump is from real estate sector his politically influenced behavior is for republican people so he might take a decision for the favor of republican or for the beneficiary of real estate giant\'s.