Question

The top management of a smartphone manufacturing company recently observed that the government has ordered new safety standards for batteries used in smartphones to prevent overheating. It also noticed that the government announced a reduction in import duties on components used in mobile phones. The dimensions of business environment highlighted in the above case are:

• A. Technological and legal environments
• B. Political and technological environments
• C. Legal and social environments
• D. Political and legal environments

Hint:

Remember: Government orders or court rulings belong to the "Legal" environment, whereas government policy decisions and trade announcements belong to the "Political" environment.

Answer 1

The Correct Option is D

Step 1: What is being asked.
We need to spot which two dimensions of the business environment are shown in the case, one dimension per government action described.
Step 2: Look at the first action.
The government setting new safety standards for smartphone batteries is a rule that every manufacturer has to follow whether it likes it or not. Rules and orders like this belong to the legal environment.
Step 3: Look at the second action.
Cutting import duty on mobile components is not a law being enforced, it is a policy choice made by the ruling government to support the industry. Decisions like this fall under the political environment.
Step 4: Put both together.
Since one event is a legal requirement and the other is a political policy move, the two dimensions at work here are political and legal.
\[ \boxed{\text{Political and legal environments}} \]