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Question
Justify the following statement:
Political stability builds up confidence among business people.
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Solution
- Business firms are affected by the government and its policies.
- Political force decides the nature of the business, device performance, and projects for development.
- The political environment includes stability and peace in the country. Political stability builds confidence among different interest groups and investors because long term policies and projects will be started by the government and if the government keeps on changing every six months or in a year.
- This will impact long term decisions of development for the country. Because political parties identify forms their decision making. Hence if a government gets its full tenure of 5 years, it can complete its projects and plans and win the confidence of the people.
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