The global economy affects local political decisions by shaping trade policies, investment opportunities, and economic stability in individual countries. International economic trends can influence domestic priorities, pushing governments to adapt policies that respond to global competition and economic pressures. For example, a country heavily reliant on exports may prioritize trade agreements or regulations that enhance its market position. Conversely, economic downturns can lead to localized unrest and affect governmental legitimacy, prompting leaders to adjust policies in response to public dissatisfaction. Global interconnectivity necessitates that local governments remain attuned to international developments.