Question

The top management of a smartphone manufacturing company recently observed that the government has ordered new safety standards for batteries used in smartphones to prevent overheating. It also noticed that the government announced a reduction in import duties on components used in mobile phones.

The dimensions of business environment highlighted in the above case are:

विकल्प

• Technological and legal environments

• Political and technological environments

• Legal and social environments

• Political and legal environments

Answer 1

Political and legal environments

Explanation:

The government ordering new safety standards is a legal/regulatory change (laws and regulations companies must follow), while the government’s cut in import duties is a political/policy decision affecting trade and costs. Both items are government actions that affect the external business environment.