Political Environment Case Study Example | Topics and Well Written Essays - 250 words

Political Environment - drive Study ExampleA good political environment such as political constancy is conducive to personal credit line because it meant that business can operate unhampered. Its factories can work without disruption and its employees can go to work any issue, therefore, the business can operate smoothly when there is a political stability. A no-count political environment such as political instability, on the other hand, is a freehanded macroeconomic environment for business. We can take the recent issue about Egypts coupd etat where the military took over the government and the people protesting it. News of military crackdowns is everywhere and conflict happens every day. This is bad for business because it cannot operate smoothly. Moreso when it is in the Middle East where the majority of the oil in the world is produced. In the case of political instability in Egypt, oil scathes rose up above the $100 because Egypt controls the Suez canalize where most oil cargo passes through such as what is reported in the article embrocate prices rise above $100 post-Egyptian militarys coup detat (Business Standard, 2013). This uncertainty that oil may not reach their terminal or may be entangled in the conflict sends anxiety in the market that its price shot up. And this price hike in oil has ripple negative effect in business in general and for us consumers because all industry is dependent on power which needs oil. When the stimulation of the price of oil shots up, the price of the products and services will naturally increase making everything expensive.