Many companies in Dansland retracted their businesses as the government passed a new law requiring the companies to pay double the tax for conducting business in Dansland. This is a _____ that the companies doing business in Dansland have faced.

Question

Many companies in Dansland retracted their businesses as the government passed a new law requiring the companies to pay double the tax for conducting business in Dansland.​ This is a _____ that the companies doing business in Dansland have faced.

Quizplus · Accepted Answer

The situation described in the statement shows policy uncertainty as the government passed a new law requiring companies to pay double the tax for conducting business in Dansland. This uncertainty regarding government policies can affect the decision-making of companies and lead them to retract their businesses.

Many Companies in Dansland Retracted Their Businesses as the Government