A good example of how the political environment can impact global business is when a new government in India in the late 1970s ordered Coca-Cola to dilute its investment in its Indian subsidiary and turn over its secret formula.

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In the late 1970s, the Indian government required Coca-Cola to reduce its equity stake and disclose its formula, leading the company to exit the Indian market, illustrating how political decisions can affect business operations.

A Good Example of How the Political Environment Can Impact