P Ltd., a manufacturer of electronics based in Indonesia, seized an opportunity when the Prime Minister of India announced a relaxation in import duties on electronic items. Responding to this favorable development, the company expanded its operations by exporting products to India. In a strategic move, P Ltd. opted to collaborate exclusively with retailers possessing direct online links to suppliers, ensuring efficient stock replenishment. Despite successfully entering the Indian market, P Ltd. remained proactive. The company continuously enhanced its products, particularly in the realm of mobile phones, to stay ahead of competitors' offerings. As the festive season approached, numerous E-commerce sites launched sales, prompting P Ltd. to anticipate increased demand. To meet this surge in demand, the company meticulously arranged resources such as finance and raw materials. Consequently, P Ltd.'s performance witnessed significant improvement.

In the statement, "The Prime Minister of India announced a relaxation in import duties on electronic items, leading the company to initiate the export of products to India," which aspect of the business environment is emphasized?

Political

The announcement by the Prime Minister regarding import duties is a political decision that directly affects the business environment.