Question : Case Study 11:
LMN Enterprises is a multinational company operating in multiple countries. It is facing challenges due to changes in trade agreements and tariffs between countries.
Q:- How can understanding the political environment help LMN Enterprises in dealing with changes in trade agreements and tariffs?
Option 1: By seeking government subsidies
Option 2: By finding alternative suppliers
Option 3: By forming strategic alliances with foreign companies
Option 4: By reducing the workforce
Correct Answer: By forming strategic alliances with foreign companies
Solution : The correct answer is (C) By forming strategic alliances with foreign companies
Understanding the political environment can help LMN Enterprises in dealing with changes in trade agreements and tariffs by enabling the company to form strategic alliances with foreign companies. These alliances can help the company navigate the complex and evolving political landscape of international trade. Such partnerships can provide access to local knowledge, networks, and resources, as well as help the company adapt to changing trade regulations and agreements.
Q:-What is the business environment factor affecting LMN Enterprises in this case?
Option 1: Economic environment
Option 2: Technological environment
Option 3: Political environment
Option 4: Social environment
Q:- What does the term "globalization" refer to?
Option 1: The process of reducing government intervention in the economy
Option 2: The process of nationalizing private companies
Option 3: The process of promoting import restrictions
Option 4: The process of increasing economic integration and interdependence among countries
Regular exam updates, QnA, Predictors, College Applications & E-books now on your Mobile