Political factors refer to the degree of government intervention in the economy. The legal and regulatory factors included are labor laws, tax policies, consumer protection laws, employment laws, environmental regulations, and tariff & trade restrictions. Often, the foreign policy of a country play an important role in determining the trade regulations, which can either result in trade restrictions or trade incentives. The industry-specific regulations imposed by the government also significantly impact the company and are also a part of this category in the PEST analysis.