Political
In Wales, a number of political aspects are devolved to the Welsh Government, such as for example health, education, tourism, and some taxes. A devolved government was established in Wales in 1999 with sixty elected Assembly Members. Watch the video clip of Dafydd Iwan explaining what happened:
The Welsh Government has responsibility for:
- 1. Agriculture, forestry, and fishing
- 2. Education
- 3. The environment
- 4. Health and social care
- 5. Housing
- 6. Local government
- 7. Highways and transport
- 8. Some control over taxation
Therefore, Welsh Government decisions will affect businesses in these areas. Other matters like general taxation, defence, foreign policies etc are controlled by the Government of the United Kingdom. Businesses can benefit from support from the Government financially or through its policy decisions.
Businesses can also benefit or be negatively affected by political relations around the world. For example, if businesses are part of a trading block.
As international trading is complex with many regulations, countries often come together to agree terms such as creating a trading bloc. The UK was formerly part of the European Union trading bloc but is no longer part of this bloc. The UK Government has made agreements with a number of other countries including Australia and New Zealand.
The Welsh Government also markets Wales worldwide as a place for business.
Watch the video that shows some examples of this type of promotion: Business Wales
What are the benefits to businesses of locating their business within Wales?
Can you think of any disadvantages?