Match List I with List II

Choose the correct answer from the options given below :

A-I, B-II, C-III, D-IV

The correct answer is option (1) : A-I, B-II, C-III, D-IV

A. Political Environment (A-I: Stability and peace in a country):

• The political environment of a country can significantly influence its stability and peace. Political stability and peace are critical factors for businesses and society as a whole. When the political environment is stable, it contributes to a sense of security and predictability, which is favorable for economic and social activities.

B. Social Environment (B-II: Traditions):

• The social environment of a region or country is influenced by its cultural traditions and societal norms. These traditions shape the behaviors and values of the population, impacting how businesses and individuals interact, and how products and services are accepted in the market.

C. Legal Environment (C-III: Judgments):

• The legal environment includes the legal system and framework within a country. Legal judgments are a part of this environment, as they involve the decisions and rulings made by the legal system, which can have significant consequences for individuals and organizations. This includes matters related to contracts, disputes, and
compliance with laws and regulations.

D. Economic Environment (D-IV: Inflation rates):

• The economic environment is closely tied to economic factors, including inflation rates. Inflation rates reflect the changes in the general price level of goods and services in an economy. They are a critical economic indicator because they impact purchasing power, cost structures, and the overall economic health of a country. Businesses need to consider inflation rates in their financial planning and decision-making.