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A new industrial policy gave priority to domestic manufacturing and local sourcing. Which dimension is most related?

Answer and explanation

Correct answer: Political dimension

The governing concept is the political dimension of the business environment. It covers government policy, political decisions, public priorities and the direction set by the state for business activity. An industrial policy is formulated by the government and expresses its preference for domestic manufacturing and local sourcing. Thus, option C is correct: the immediate cause is a government policy decision. Option A could become relevant if the question focused on a specific statute, compliance rule or legal restriction. Option B would relate to social values, population patterns or consumer attitudes. Option D may be affected by the policy because production and sourcing influence markets, but the dimension directly identified in the stem is political.

Related tags

Business EnvironmentPolitical EnvironmentIndustrial PolicyBusiness StudiesClass 12 Mcq

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