Question

What is the importance of political and legal forces in international market assessment?

Answer 1

As per the PESTEL analysis, political and legal system play a major role especially during the international market evaluation and this is because of the fact that the legal system from the home country and host country might be different there for instance the home country might follow English common law while the host country might follow civil law and the the rules of commerce might be different for different purposes as a result of which based on the legal system of that country you should understand how the commerce can be carried out in a legal way and still remain profitable because it would not be possible to carry out commerce legal way. apart from that it is also important to understand about the political system because the relationship between the home and host countries and the political stability of that country might be important to understand how the business and go on and how the government should supported because if the political system is unstable then the economic system might also collapse which might not be well for your business