Answer to Question #197166 in Management for sandra

Question

Most South African companies struggle to compete with products from countries like China and America when it comes to prices. To mitigate this challenge, owners believe that the government should raise tariffs for imports. However, the government will not be able to increase import tariffs, as it has concluded free trade agreements with different countries globally. 

 

Which one of the following components of the macro-environment relates to the scenario? 

 

1 Social environment

2 Physical environment

3 International environment

4 Technological environment 

Answer 1

The component of the macro-environment that relates to the scenario presented is the international environment. This is because the international macro-environment brings together different uncontrollable aspects that have a global impact. Besides, it indicates the indirect relationships of an organization with international markets.