Expansion of transportation and communication facilities is an example of:

Economic Environment

The correct answer is Option (1) → Economic Environment

Economic Environment: This dimension includes factors that relate to the overall economic system, such as economic infrastructure, capital markets, interest rates, and the general availability of resources. Transportation and communication are key components of a country's economic infrastructure and directly influence economic activities like production, distribution, trade, and the cost of doing business. Major investment and expansion in these sectors are measures to boost the economy.