The existing system of government and the administrative sub-division of a country which affect the operation of business in the country is described as

The existing system of government and administrative sub-division of a country which affect the operation of business in the country is described as the political environment. The political environment refers to the laws, regulations, policies, and practices of government that affect business operations. This includes the form of government, such as democracy or dictatorship, the level of government involvement in the economy, the stability of the government, and the relationship between government and business. For example, a country with a stable government and favorable policies towards business may attract more investment and be more conducive to business operations. On the other hand, a country with an unstable government or unfavorable policies may discourage investment and hinder business operations.