Theme: Credit analysis Why we need industrial analysis?

THEME:

Credit analysis - Why we need industrial analysis?

Questions:
What is credit analysis?
Why we need industrial analysis?
What is political part of industrial analysis?
Credit analysis aims to find and determine that you will default on your debt obligations, or how worthy you are to receive new credit. Your creditworthiness is what creditors look at before they approve any new credit to you.
What is credit analysis?
Industry analysis, as a form of market assessment, is crucial because it helps a business understand market conditions. It helps them forecast demand and supply and, consequently, financial returns from the business.
Why we need industrial analysis?
This part of analysis is important, because it includes regulation of government, tax policy and monetary policy. This kind of elements directly effect to business and their profit.
For instance, If one company has good amount of sales, but the stability of Government is bad, we can not say that company continue its work and they can return given credit.
On the other hand, if there are many preferences for selected industry, in that case factories can develop and earn more profit.
In conclusion, we should see to political analysis as LEVER of economy.
What is political part of industrial analysis?