Even after opening up of our economy in 1991, foreign companies found it extremely difficult to cut through bureaucracy and red tapism.' Identify the element of business environment and explain it with the help of an example.

Explanation

The political environment consists of the forces concerning management of public affairs and their impact on business. It includes the political conditions in the country and attitude of the government towards businesses and business policy
For example, political unrest and threat to law and order adversely affect confidence of investors and reduce the level of investment in the economy