Question

The government has enacted laws that promote both fair trade and competition by prohibiting the formation of monopolies or alliances that would damage a competitive marketplace, fostering fair pricing practices for all suppliers and consumers. These actions are part of the ________ environment of business.

Answer 1

Answer:

Political / Regulatory

Explanation:

The political or regulatory environment of business comprises of different stakeholders which includes the government organization, political parties, legislation and laws. It is an environment which deals with activities of these stakeholders and factors affecting the administration of public affairs and business activities of different organizations.

Also, the regulatory environment deals with the activities or laws and legislation that have direct and indirect impacts on business operations. Such as:

1. Regulations on unfair business practices so as to create fair competition.

2. Protection of consumers from unfair business practices.

3. Ensure the society interest in business operations are not overridden by greed capitalist.