Potential and Actual Effects of Political Events on Trade Essay

Potential and Actual Effects of Political Events on Trade - Essay Example The alignment is such that the economic activities of people are improved or that self-interest is created leading to lack of development. Political activities in various countries such as in France and Germany have had significant impacts both to the society and to the production process. In Afghanistan for instance, most of the distribution and trade events are interrupted due to substantial collisions between the politicians and their parties. However, this depends on the way such activities are conducted. In other regions, the events are so peaceful and no interference in the security is witnessed, leading to improvements in the economic sectors. Political activities in any given state are characterized my rallies, forums, banners, large audiences of people and sometimes fights, insecurity and other inhumane acts (Deutsch & Coleman, 2010). A country in the Middle East such as Afghanistan may face different potential and actual effects in the trading sector in the event of politic al upraising. These effects may be diverse and even spread to influence other neighboring countries with which it sources goods and services leading to low economic output. Potential and Actual Effects of Political Events on Trade Sector in Afghanistan The potential effects influence different issues within the trade sectors such as the distribution, production, exports and even the consumption of goods and services. The outcomes fall in different categories involving economy, environment, governance, administration and even corruption. Patronage- politics influences the stands and powers of an individual especially if such an individual has a high standing in the government. This is the favor given to supporters and involves changes in the administration official to those such a power wants. It normally taken as payment to the supporters and majorly a form of corruption where the people elected in the offices lack competence and skills. Political events cause patronage and influenc es trade through improper management and low output in the activities. Poor management of resources arises because most officials are selected for loyalty rather than ability and mainly from a particular group (Janis & Mann, 2007). Political results therefore determines in most cases the officials in the government, and this is evident in Romania a state in Europe where rapid changes of officials in the public sector took place once a new government was formed. Corruption- Political activities lead to introduction of officials sometimes with less skill or even lacking integrity. In the trading sector, corruption becomes a disease leading to economic distortions through direction of resources for public investments to capital projects for individuals. An increase in the bribes and kickbacks is observed, and the public officials increase the technical complexities of projects so as to obtain funds. As a result, investments are falsified and the prices of conducting business rise due t o risks of detection, costs of negotiating with officials, illicit payments and risks of breach. In such cases, competition is blocked, and inefficient firms take charge of the market distorting trade on the overall. Insecurity- political events are accompanied by riot from opposing groups or even disagreement by people on a particular candidate. Still, opposition of the elected power may arise leading to