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A new industrial policy gave priority to local manufacturing. Which dimension does this show?

Answer and explanation

Correct answer: Political dimension

The governing concept is the political dimension of the business environment, which reflects government policies, priorities, public programmes and the general direction chosen by political authorities. An industrial policy that gives preference to local manufacturing expresses a government decision about national production and economic priorities. Therefore option C is correct. Such a policy may later create economic effects, such as investment or employment, and it may be implemented through laws or regulations, but the question asks what the policy itself represents. Its source and direction are governmental, so it belongs primarily to the political dimension rather than the economic, legal or social dimension.

Related tags

Business-EnvironmentPolitical-EnvironmentIndustrial-PolicyTechnological EnvironmentBusiness EnvironmentBusiness StudiesClass 12 Mcq

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