Which of the following is a component of political environment?
A) The degree of politicisation of business and economic issues
B) Birth and death rates
C) Prevailing political system
D) Educational system and literacy rates
E) The extent and nature of government intervention in business
F) Balance of payments and changes in foreign exchange reserves
Choose the correct answer from the options given below.
Answer & explanation
Correct answer: option 1
The correct answer is option 1- A, C and E only.
A) The degree of politicisation of business and economic issues- Political factor
B) Birth and death rates- Social factor
C) Prevailing political system- Political factor
D) Educational system and literacy rates- Social factor
E) The extent and nature of government intervention in business- Political factor
F) Balance of payments and changes in foreign exchange reserves- Economic factor
Major Elements of the Political Environment
* Prevailing political system
* The degree of politicisation of business and economic issues
* Dominant ideologies and values of major political parties
* The nature and profile of political leadership and thinking of political personalities
* The level of political morality
* Political institutions like the government and allied agencies
* Political ideology and practices of the ruling party
* The extent and nature of government intervention in business
* The nature of relationship of our country with foreign countries