1 The political legal and institutional environment is influ
Solution
The political legal and institutional environment are influenced by the culture of the particular country.
Political, legal and institutional aspects are important parts of the environment which have an effect on the organization.
Administrative/Legal Environment
This provides an important framework where the organization functions. There are few countries that have restrictive legal environment and this has impact on the different dimensions of the organization. It is important to have understanding about the legal environment. This helps to determine if organizational change can take place. The policies, legal laws and regulations define the development of the organization. The legislative mandate can also have an effect on the organization.
Political Environment
The relationship between the government and its development strategy forms part of political environment. The specific changes and introduction of policies decides the fate of the organization and if it hampers its progress.
There are certain organizations that require specific status to operate in the country. External funding, foreign policies and so on are also important determining factors. The level to which the political system is stable also counts
For example the corruption level in countries like India and Thailand is high. Th legal and political environment makes it complicated for industries to operate in the country if they are a startup.
There is a change in the rules of foreign direct investment and it has great inflow of foreign investment.
