Answer : Importance of economic and political institutions in
explaining economic development of an organization as follows :
- Economic institutions such as stock market, insurance
institutions helps in providing true financial position of the
business as well as financial condition of the economy.
- Liquidity of the economy has been judged by the economy
institutions which enables the true picture of an economy.
- Economic institutions such as way to inject funds in an economy
which resulted in an economy development.
- Role of maintenance of liquidity and managing proper price
changes in an economy.
- Political institutions policies framework and actions are help
in explaining true position of an country economy development.
- Strategies formulated and implemented helps in judging true and
fair view.