Franklin Inc., an apparel manufacturer based in Scotland, opened a new store in the United States. Franklin's designs were well received by consumers in the host country. However, the firm incurred very high expenses due to the expensive rents and the higher costs of labor. Also, there was a hike in the price of fuel in the United States. This led to increased expenditures on the transportation of goods. This indicates that Franklin Inc. had serious issues in the United States due to poor:

Question

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The given scenario highlights that Franklin Inc. incurred high expenses due to expensive rents, higher costs of labor, and an increase in fuel prices. These factors can be classified as economic conditions, which negatively impacted the business. There is no mention of poor political or legal conditions or cultural differences affecting the firm's operations.