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CBSE Class 12 Business Studies 2025 All Sets Solved Paper
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Question : 12 of 20
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Seeing the increasing demand for automobiles in Buleti, Veso Cars', a global car manufacturing company planned to expand its operations and sell its cars there. However, the government of Buleti imposed high import duties on foreign made cars to protect local manufacturers from foreign competition. This attitude of the Buleti government towards foreign car manufacturers increased the cost of importing cars, making it less affordable for Veso Cars' to sell its cars at competitive prices in Buleti.
Solution:
The scenario describes the government's imposition of high import duties on foreign-made cars to protect local manufacturers. This reflects a political decision that affects the business environment, particularly for foreign companies like 'Veso Cars'. Therefore, the correct answer is the Political environment.
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