6.1.1—Political and legal

Political decisions and legal rules shape taxes, employment, competition, consumer protection, trade, product standards and environmental obligations. They can create both constraints and opportunities.

The effect depends on the business model, jurisdiction, timing and ability to adapt. Compliance is a cost, but regulation can also build trust or remove unfair competition.

A new safety rule may increase testing cost for a manufacturer while raising customer confidence and changing which competitors can enter.

A policy announcement is not the same as an implemented rule, and legal impact must be checked in the relevant jurisdiction.