Q.Explain briefly why political stability is considered important for business.

A stable government with predictable policy gives businesses the confidence to make long-term commitments; instability raises the risk attached to those decisions.

Political stability matters to business because major business decisions — building a factory, signing a multi-year supply contract, entering a new market — assume that today's rules and policy direction will broadly continue to apply for years into the future. A stable government, with predictable policy and a smooth, peaceful transfer of power at elections, gives businesses the confidence to make such long-term commitments. …