Political Policies
Not surprisingly, a nation's political policies influence how international business takes place within its borders(indeed, whether it will take place). For instance, Cubaonce had a minor-league baseball franchise, which went the way of diplomatic relations between Cuba and the United States back in the 1960s. Several Cuban baseball players are now members of professional U.S. teams, although most of them had to defect from Cuba to play abroad.(Even more Cuban boxers than baseball players have defected.)
Obviously, political disputes-particularly military confrontations-can disrupt trade and investment. Even conflicts that directly affect only small areas can have far-reaching effects. The 2002 and 2009 terrorist hotel bombings in Indonesia resulted in a decrease in the country's international tourism revenue and investment capital because individuals and businesses abroad perceived it as too risky.