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The government announced an industrial policy giving priority to domestic manufacturing. Which dimension does this show?

Answer and explanation

Correct answer: Political dimension

The governing concept is that the political environment includes government ideology, priorities, stability and policy decisions that shape the conditions in which businesses operate. An industrial policy expressing preference for domestic manufacturing reflects the government’s direction and priorities toward industry, investment and production. Therefore option C, the political dimension, is correct. Such a policy may later produce economic outcomes, such as employment or import changes, and may be implemented through laws, but the clue in the question is the government’s policy decision itself. It is not primarily a social change in values or population, nor a technological innovation or an economic indicator such as income or inflation.

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Business EnvironmentPolitical DimensionIndustrial PolicyLegal EnvironmentBusiness StudiesClass 12 Mcq

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