Political issues: These factors deal with the policies of the governmental institutions. The business of the company in a new country is affected by the rules and regulations formulated by the government. The companies functioning in the UK market have to follow all the rules of the European Union. The political structure of the country affects the functioning of the company.
Economic issues: Economic factors are affected by the changes in the international market. When the income of the people increases their living standard increases. With the increase of the living standard the people the spending power of the people increase. This increases the demand of the product in the market and hence its production increases. The economic factors that affect the overall business activities are interest rates and inflation.