Question

Which of the following segments of PESTEL analysis includes elements such as tax policies and changes in trade restrictions and tariffs?a. Politicalb. Economicc. Sociald.Technologicale. Environmental

Answer 1

Answer:

A. Political

Explanation:

PESTEL analysis is an instrument used to analyze and monitor the macro economic environmental factors than can have an effect on the organization.

PESTEL is an acronym for

P - Political

E - Economic

S - Social

T - Technology

E - Environmental

L - Legal

Political Factor - This is all about the role government plays in the economy. This can include – government policy, political stability or instability in overseas markets, foreign trade policy, tax policy, labour law, environmental law, trade restrictions etc.

Studying this would enable organizations respond better to current trends and prepare better for future legislations.