Politics is the use of power by those in authority. When analyzing the development of a nation. We see that some economic powers play essential roles in directing the country’s policies and procedures.


Every nation decides on its own how much taxation is acceptable and how much currency is created, for instance. Several countries today, as you will learn through visiting or studying them. They regulate the flow of money between the private sectors. 

Structure of Government

The political structure of a nation is crucial. One of many possible forms of government is the authoritarian state, while others include the communist state and the democratic system. Business policy in a country can be influenced by the government, which can have far-reaching effects on people’s and the country’s economic situation.

The Relative Steadiness or Shakiness of Government Institutions

Whether a nation’s governmental institutions can be relied upon over time. This will be contingent on the safety of that country, where no threats of war exist on the home front or abroad. The instability that results from a nation’s exposure to a high terrorist threat can have a significant impact on commercial activity there. When a country is at war, the value of its currency falls relative to those of other countries. There won’t be any eager investors putting their money into something that isn’t stable.