Question

Trade policies, taxation rules, and subsidies fall under:

• A. Economic Environment
• B. Political Environment
• C. Legal Environment
• D. Technological Environment

Hint:

The political environment includes government policies, regulations, and actions that directly affect business operations, such as trade policies and taxation.

Answer 1

The Correct Option is B

The correct answer is Political Environment. Trade policies, taxation rules, and subsidies are part of the political environment because they are determined by government decisions and political actions. The political environment refers to the influence that government policies, political decisions, and regulations have on business operations. Economic policies such as trade regulations, taxation, and subsidies play a major role in shaping the business environment by affecting the costs, opportunities, and risks businesses face.