International activities can also have a direct impact on your small business. But emerging political issues don`t need to lead to new laws to impact your day-to-day operations. It`s worth paying attention to new issues that may require a direct response from you. A few examples can illustrate how political and legal forces can affect your business. In some countries, the government controls more aspects of daily life than in others. While common language deals with totalitarian and authoritarian synonyms, there is a clear difference. For the purposes of this discussion, the most important relevant difference is ideology. Authoritarian governments centralize all control in the hands of a strong leader or a small group of leaders who have full authority. These leaders are not democratically elected and are not politically, economically or socially accountable to the people of the country. Totalitarianism, a more extreme form of authoritarianism, occurs when an authoritarian leadership is motivated by a particular ideology, such as communism.

In totalitarianism, ideology influences or controls the people, not just a person or a party. Authoritarian leaders tend to have no guiding philosophy and use more fear and corruption to maintain control. European Union: relations between Colombia and the EU “are based on political dialogue, trade and development cooperation” (EEAS), Colombia is the fourth economic partner of the EU with a trade volume of 11.884 billion. EUR, and the second largest trading partner, the European Union, supports Colombia in the bilateral dialogue on human rights, and the political dialogues are based on the Rome Declaration of 1996, and the dialogues are based on the political and cooperation agreement between the EU and the Andean Community. Political Action Committees (PACs) are interest groups created for the sole purpose of raising funds from their members and making them available to any candidate and politician. This is the first time we have debated this subject. The National Electoral Centre (NEC) is the body responsible for registering and counting the number of PACs in Colombia. Not surprisingly, established democracies, such as those found in the United States, Canada, Western Europe, Japan and Australia, offer a high degree of political stability.

Although many countries in Asia and Latin America are also functioning democracies, their level of development affects the stability of their economic and trade policies, which can fluctuate with changes in government. Chapter 4 “World Economies” provides more information on industrialized, developing and emerging countries. There are 4 main effects of these political factors on business organizations. It may seem easy to assume that companies prefer to operate only in democratic, capitalist countries where there is little or no state involvement or intervention. However, history shows that global companies in certain industries have chosen to do business with countries whose governments control that industry. Companies in sectors such as commodities and oil have found more authoritarian governments as more predictable partners for access and long-term investment in these commodities. The complexity of trade in these situations is increasing as governments throughout history have come to the aid and protect their countries` greatest commercial interests in markets around the world. The history of the oil industry shows how various governments have sometimes protected their national companies` access to oil through political violence. In modern times, the Chinese government uses a combination of government loans and investments in Africa to give Chinese companies access to local resources and raw materials. Many business analysts mention these issues in discussions of global business ethics and the role and responsibility of business in various policy environments. Social forces put pressure on political forces to create legal forces governed by regulatory forces.

Political and legal forces are two of the three most important aspects for a company, social forces being the third. Politics is a changing scene, and rules and laws will not change regularly, but quite often. Different elected parties have different feelings about certain business practices and use or amend laws to change them. The same applies to trade in other countries.