Question

"Even after opening up of the Indian economy in 1991 foreign companies found it extremely difficult to cut through the bureaucratic red tape to get permits for doing business in India, which created a negative impact on business."

Identify the dimension of the business environment which led to creation of the negative impact on business.

Options

• Social Environment

• Technological Environment

• Political Environment

• Legal Environment

Answer 1

Political Environment

Explanation - 

Political environment refers to government acts that may have an impact on the daily operations of any business or firm, whether domestically or globally.