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    POLITICO-LEGAL

    FACTORSAFFECTING

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    So what constitutes the POLITICO-

    LEGAL ENVIRONMENTof a state?

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    3 PoliticalInstitutions

    Legislature

    Executive

    Judiciary

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    POLITICAL FACTORS

    Political factors are how and to what degree a government

    intervenes in the economy.

    These include:

    Environmental regulation and protection

    Taxation

    International trade regulation.

    Consumer protection Competition

    Employment

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    LEGAL FACTORS

    How and to what degree does law affects the

    economy in the state.These include:

    Civil law: based on a detailed set of laws that

    constitute a code and focus on how the law is applied.

    Common law: is based on traditions and precedence.

    Religious law: also known as theocratic law and is

    based on religious guidelines.

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    POLITICAL AFFECTS ON

    KERALA

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    EX:1 Congress-led UDF not to allow retail FDI in Kerala

    "FDI will not be allowed in

    the retail sector during

    the tenure of this

    government. There is no

    change in the government

    stand, for which we have

    got the permission of thecentral leadership," Chief

    Minister Oommen Chandy

    said.

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    FDI in retail: Why Kerala is fiercely opposing big foreign investment

    Why do we need foreign investment to do what we are already

    doing?

    Why does one want Walmart-style operations if they bring no local

    advantage

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    Ex:2 KSIDC & HUDCO, MoU

    Kerala State Industrial

    Development Corporation

    and HUDCO signed an

    MoU to harness

    opportunities in the

    infrastructure sector in

    Kerala.

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    Ex:3 After Munnar, Kerala government trains its guns on

    The government has also directed the local self-government

    institutions not to grant licenses to retail monopolies like Reliance

    and to cancel licenses already granted if the law permits.

    "The public mood is

    against Reliance, so we

    will stop them in theirtracks, Food and Civil

    Supplies Minister, C

    Divakaran said.

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    EX:4 With no licenses, Telenor, Videocon, Tata

    Teleservices to lose 10 mn users on January 18

    Telecom operators Telenor, Videoconand Tata Teleservices, which

    collectively have about 10 million

    subscribers in the circles where their

    licences expire next month, areamong the nine telcos whose mobile

    permits were cancelled by the

    Supreme Court in February this year

    in the 2G-spectrum allocation case.

    The affected operators have

    permission to use their allocated

    spectrum till January 18.

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    EX 5 : Kerala to charge fishing boats from

    other states, Tamil Nadu fishermen upset

    According to a government order dated August 9, 2012, issued by state

    fishing and ports department, all fishing boats from neighbouring states

    engaged in fishing in Kerala coast should pay Rs 15,000 as user fee to

    the state government every three months.

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    LEGAL FACTORS AFFECTING

    KERALA

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    EX:1 Palmolein case

    Former Chief Minister K Karunakaran Wednesday alleged that Kerala's governmentpetition urging the Supreme Court to lift its three-year-old stay on the trial of the

    Palmolein import case,in which CVC PJ Thomas is an accused, was a result of "personal

    vendetta".

    Chief Minister V S Achuthanandan has decided to pursue the prosecution in the casebecause he wanted to settle personal scores with Karunakaran, the veteran's Congress

    leader's lawyer K K Venugopal alleged.

    Hearing on Karunakaran's petition, opposing his trial along with others, assumes

    significance as its outcome could have a bearing on the fate of Thomas.

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    EX 2: Toddy to stay on as health drink:

    Kerala HC

    The Kerala High Court had last month asked the state government to

    consider banning toddy but reversed this on Thursday, with the

    government assuring it would ensure the supply of quality toddy.

    One reason why the courts observation caused distress was that many

    consider toddy or natural alcohol a health drink.

    Toddy has an alcohol content of just 8.1 per cent, and is preferred by

    women in central Kerala districts.

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