Foreign businesses in India appear to receive unusually close scrutiny and must meet special regulations, aimed at protecting local businesses. This includes nontariff trade barriers. This reflects that a country's ________ should be carefully considered before doing business in that country.
A) political-legal environment
B) industrial structure
C) cultural norms
D) natural resources
E) income distribution

Question

Quizplus · Accepted Answer

The reference to regulations and nontariff trade barriers suggests that the issue at hand is related to the political-legal environment of the country. The fact that local businesses are being protected indicates that there may be policies in place to promote and support domestic companies over foreign ones. It is important for foreign businesses to carefully assess the political and legal environment of a country before deciding to operate there.

Foreign Businesses in India Appear to Receive Unusually Close Scrutiny