Question

The UK's exit from the EU and political upheavals in Egypt, Tunisia, Libya, and Syria illustrate uncertainties in the political/legal segment of the general environment that could affect the performance of business firms. a. True b. False

Answer 1

Answer:

True

Explanation:

Most of international business is done through contracts between countries or groups of countries. The Brexit (UK´s exit from the European Union) could mean that Europe may not be able to accomplish import/export quantities of British origin products in its international contracts with other countries or regions.

Social and political instability in mid-east countries like Tunisia, Libya, and Syria (oil exporting countries) may also mean that companies cannot reach their goals; for example, oil supplying companies performance could be reduced if a counter party takes the control of these countries, new rulers shall not release oil to companies which signed contracts with previous rulers.