Fresh graduates of the National Institute of Fashion and Designing (NIFD), Shree and Anshu have embarked on a new venture by launching an online store for fashionable and designer clothes. Seeking guidance from seasoned entrepreneur Mrs. Monika Gosa, they learned the importance of scrutinizing the business environment, taking into account elements like investors, competitors, and external forces such as social and political factors. In response to Mrs. Gosa's advice on the evolving landscape of production and distribution methods, Shree and Anshu decided to explore the opportunities within the online retail space. Their analysis highlighted a growing trend of online shopping, indicating a cultural shift away from traditional mall-based purchases to the convenience of online transactions at any time. Acknowledging the challenges of a dynamic market—characterized by turbulent conditions, dwindling brand loyalty, and market fragmentation—the duo considered the potential of expanding internationally. Encouraged by government initiatives in export promotion, tariff structure rationalization, and foreign exchange reforms, they contemplated the prospects of tapping into global markets. Prior to finalizing their comprehensive business plan, Shree and Anshu wisely undertook a meticulous study of the latest market trends to align their product offerings with evolving consumer demands.

"Government's effort for the export promotion, rationalization of the tariff structure and reforms with respect to foreign exchange gave them the idea to think of export as well".

Which dimension of the business environment is highlighted here?

Economic and political

"Government's effort for the export promotion, rationalization of the tariff structure and reforms with respect to foreign exchange gave them the idea to think of export as well." This indicates the intertwining of economic factors (export promotion, tariff structure) and political factors (government reforms) influencing the business decision to consider entering the export market. The passage mentions the government's efforts for export promotion, rationalization of the tariff structure, and reforms related to foreign exchange. These efforts are both economic, as they involve trade-related policies, and political, as they reflect government initiatives.