Political factors refer to the influence that government policies, regulations, and political stability have on businesses and economies. These factors can include laws related to trade, taxation, labor, and environmental regulations. For example, changes in tax policy can affect a company's profitability, while trade agreements can open or restrict market access. Additionally, political stability is crucial for economic growth. Countries with stable governments tend to attract more foreign investment, as investors seek a predictable environment. Conversely, political unrest or corruption can deter investment and disrupt business operations, impacting overall economic performance.