Political
factors affect businesses by creating a sense of uncertainty. A good example is the current
trade war between China and the USA. American businesses that get most of their products or
business from China are not sure how far both countries are willing to go with the tariffs. As a
result, they cannot set long-term goals for their businesses. These firms have to make do with
what is there. They can only focus on short-term sales targets because Chinese businesses are
not totally locked out of the American economy.
The best
way for businesses to deal with this uncertainty is to sit down with the Federal government and
try to get them to commit to making the trade environment better for local firms. Since the
elections are near, the Federal government will be more open to talks because they want another
term. A commitment to support American businesses could help increase the popularity of the
current government and change the voters' minds.
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