3.7.4 political and legal change

• What factors significantly impact businesses at various levels?

  Political factors
• Why must companies stay aware of government policies?

  To make informed strategic decisions
• What are the key aspects of government policies that influence businesses?

  • Taxation Policies: Corporation tax, VAT, income tax
  • Government Spending: Investments in infrastructure
  • Privatization vs. Nationalization: Control of industries
• How do taxation policies affect businesses?

  They affect business costs and consumer spending
• What is the impact of government spending on businesses?

  It boosts demand in construction and transportation
• What is the difference between privatization and nationalization?

  Privatization transfers control to private entities
• What are the implications of Brexit on trade relations?

  • Trade tariffs and barriers impact costs
  • Exchange rate fluctuations affect overseas trade
  • Supply chain disruptions increase paperwork and checks
• What do new trade agreements or tariffs impact?

  Costs for import/export businesses
• How does political instability affect the pound’s value?

  It can lead to exchange rate fluctuations
• What increased due to post-Brexit regulations?

  Import/export paperwork and customs checks
• What are the risks associated with government stability and political risks?

  • Elections may lead to new policies
  • Political uncertainty creates risks for investors
  • Lobbying by corporations can influence policies
• What can a change in government lead to?

  New policies on taxes and regulations
• How can political instability affect investors?

  It can create risks for their investments
• What is lobbying in the context of business influence?

  Efforts by corporations to influence government policy
• What are the main legal factors affecting businesses?

  • Employment law
  • Health and safety regulations
  • Consumer protection laws
• What does the National Minimum Wage (NMW) ensure?

  Fair pay for employees
• What is the purpose of the Equality Act 2010?

  To ensure fair treatment regardless of characteristics
• How can trade unions impact businesses?

  They can influence productivity and profitability
• What does the Health and Safety at Work Act 1974 require?

  Maintaining a safe working environment
• What are the consequences of non-compliance with health and safety regulations?

  Fines, lawsuits, or reputational damage
• What does the Consumer Rights Act 2015 protect customers from?

  Faulty goods and misleading advertising
• What does the Data Protection Act 2018 (GDPR) enforce?

  Strict rules on data security
• What are the potential impacts of compliance costs on businesses?

  Investment in legal advice and training
• How can businesses gain a competitive advantage through legal compliance?

  • Attract socially conscious consumers
  • Appeal to ethical investors
  • Enhance brand reputation
• What can lawsuits and non-compliance lead to for a business?

  Damage to reputation and financial stability