Impact of Political Environment on Business: The following are some of the examples of the impact of the political environment on business:
i. In the year 1977, the Janta Government adopted a stringent attitude towards the multinational companies. As a result of this attitude, the multinational companies like the IBM and the Coca-Cola had to quit India.
ii. The new government encouraged the multinational companies for investment in India. This led to the opening of the doors of the Indian market for the multinational companies. Consequently, the Coca-cola, entered the Indian market once again.
iii. It was only because of the political interest that Hyderabad came to be known as Cyberabad. In other words, it came to be recognised as the centre of Information Technology (IT). As a result of it, many I.T. companies came to be established.