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Give an example and explain how the political-legal environment of a country affects a global firm.

  1. Give an example and explain how the political-legal environment of a country affects a global firm.
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Assume there's a global firm based on Pakistan. Consider the case of attack on the Indian Army at the border of India - Pakistan by the terrorist group. The political system at that time is so heated up that the Indian government removed the MFN status to Pakistan and rose the import duty be200%. This political decision can get to reduce the imports from Pakistan to a greater extent on the whole and with this the firms of Pakistan will ultimately lose. In this way, Political legal environment effects a global firm

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