Dimensions of business environment

Blockchain is technological innovation. In exams connect blockchain tracking with technological dimension.

Government procurement preference indicates policy direction. In exams connect procurement preference with political dimension.

Environmental protection law is a legal rule. In exams write compliance under law as legal dimension.

Tax rate has economic impact on cost and price. In exams connect tax rate with economic dimension.

Festivals and gift traditions are linked with society and culture. In exams place festivals under social dimension.

Conversational artificial intelligence is new information technology. In exams treat AI based service as technological dimension.

Transparency in governance is linked with political system. In exams connect governance quality with political dimension.

Consumer court gives orders on the basis of law. In exams write court order as legal dimension.

Savings rate is an economic factor linked with availability of funds. In exams connect savings rate with economic dimension.

Acceptance is linked with social behaviour. In exams treat acceptance and attitude as social dimension.

Data analytics tools are technological tools. In exams connect analytics tools with technological dimension.

Stable government policy is a signal of political environment. In exams write policy stability as political dimension.

Contract enforcement depends on legal system. In exams connect contract enforcement with legal dimension.

Customer income is a key element of economic dimension. In exams treat income based demand change as economic dimension.

Food habits are linked with lifestyle and society. In exams connect food habits with social dimension.

A business-environment dimension should be identified by the main source or cause of the change. In this situation, production cost falls because an energy-saving technology and a new production method are introduced. The reduced cost is an economic result, but it is not the root cause described in the statement. The cause is technological improvement.

Therefore, option C, the technological dimension, is correct. A useful way to solve such questions is to ask whether the statement primarily describes a machine, technique, process, or scientific application. If yes, choose technology, even when the result is lower cost, higher profit, or greater efficiency. The economic dimension would be more suitable if the main issue were income, prices, interest rates, or purchasing power itself.

Government priority shows political dimension. In exams connect policy priority with political dimension.

Food safety rules are mandatory requirements framed by the government or regulatory authorities. Since the restaurant changes its kitchen standards to comply with these rules, this is the legal dimension. The economic dimension concerns changes in income, costs, or economic policy; here, the immediate cause is regulatory compliance. Exam tip: When a business changes because of a law, rule, or government regulation, identify the legal dimension.

Inflation is an economic factor affecting cost and price. In exams connect inflation with economic dimension.

Change in habits and lifestyle is social dimension. In exams treat consumer habits as social dimension.

Augmented reality is technological innovation. In exams connect digital experience tools with technological dimension.

Look at key words to identify correct dimensions. In exams distinguish money society technology government and law.

Dimension is decided by the main cause in the case. In exams read focus words like policy or act carefully.

The correct answer is A, the economic dimension. When the domestic currency depreciates, imported machinery generally becomes more expensive in domestic currency, which can affect a company’s purchasing decision.

The correct answer is B, the social dimension. Lifestyle and food preferences are part of society’s values and habits, and changes in them can influence demand for products.