Business markets, where businesses trade in raw materials, resources and components, can be subject to significant changes as a result of both domestic and international politics. This can be due to both the direct consequences of political decisions and the effects of uncertainty or speculation about political issues.
Changes in trade policies, for example, can alter the costs of raw materials and the import and export tariffs to which they’re subject. This will change their price and profitability on business markets, and could lead to attempts to find alternative sources or materials.
Political uncertainty can also cause instability for business markets. A major example is the impact on the price of oil due to political instability in the Middle East.