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:

Government Order/Law = Legal.
Government Policy/Duty Change = Political.
New Machinery/Method = Technological.

Answer 1

The Correct Option is D

Step 1: Look at the safety standards move separately.
The government ordering new safety standards for smartphone batteries is a mandatory rule backed by regulation, and any such order, law or standard imposed on businesses falls squarely under the legal environment.
Step 2: Look at the import duty move separately.
A reduction in import duty reflects the government's current policy stance and its ideology toward trade and industry, which is what the political environment covers, government decisions, stability and policy direction.
Step 3: Put the two dimensions together.
One event is a legal order, the other is a political policy decision, so together the case is illustrating the legal and political dimensions of the business environment, not technological or social ones.
Final answer: Option 4, the case highlights the political and legal environments.