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Which option includes a part of political environment?

Answer and explanation

Correct answer: Government trade policy

The political environment consists of the actions, policies and decisions of government and political institutions that influence business. Government trade policy determines how imports, exports, tariffs, market access or international commercial relations may be handled. It is therefore a clear component of the political environment, making option A correct. Customer lifestyle belongs mainly to the social environment, so B is a social factor. A new production machine represents the technological environment, so C is not political. Soil quality is a natural or physical factor, represented by D. The classification depends on the source of influence: government policy is political, while the other three arise from society, technology or nature.

Related tags

Business-EnvironmentPolitical-EnvironmentEnvironmental-DimensionsPolitical EnvironmentBusiness EnvironmentBusiness StudiesClass 12 Mcq

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