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How does political instability affect money making
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[QUOTE="Richee84, post: 266616, member: 42448"] Political instability is one of the external factor that affect a business. Political instability simply means or refers to frequent change in government or government policy that have hug impact of business. Political stability is very key to the survive of a business in a participants country,. The law and policy make by each government administration affect the existence of a business and it profit making. When government change from one policy to another, it might have positive or negative impact on the existing business in the country. Government might decide to increase it tax levy on all businesses in the country, the increase of government tax on business will definitely affect and reduce the business profit margin. When the tax levy is too much on business especially for new businesses, such business might collapse or wind up. If there is also a frequent change of government, this can also affect the existence of a business. Every government has its own policy that it will come and want to implement. Different government coming into office with different ideas and policy will have both positive and negative impact to business. Some of the policy that will be implemented will favour some and some will not be favour. [/QUOTE]
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