Which example shows political environment changing a company's purchasing strategy?

Correct answer: Government imposed a minimum local content condition

The direct answer is A. Political environment means government decisions, laws, regulations, taxes, subsidies, and conditions that affect business. A minimum local-content rule tells the company that at least a certain amount of its materials must be purchased locally. Reasoning: the government introduces the condition; the company compares it with its present suppliers; it changes its purchasing plan, perhaps replacing some foreign suppliers with local ones. A is therefore a direct example. B concerns customer preference, which belongs mainly to the market or consumer environment, not political environment. C concerns a technical change in machine capacity, so it is an internal or technological matter. D concerns weather, a natural or physical factor. A is the only option containing government action that changes the source of purchases. Memory cue: when a government order changes business decisions, think political environment.