Multiple Choice
Which of the following are two ways trade barriers can hamper a firm's productive activities in the presence of externalities?
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7. Externalities
Externalities: Social Benefits and Social Costs
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Join thousands of students who trust us to help them ace their exams!Watch the first videoMultiple Choice
Tariffs and trade agreements are part of which element of the PESTEL framework?
A
Technological
B
Political
C
Economic
D
Legal
Verified step by step guidance1
Understand that the PESTEL framework is a tool used to analyze the macro-environmental factors affecting an organization or market. It stands for Political, Economic, Social, Technological, Environmental, and Legal factors.
Identify the nature of tariffs and trade agreements. These are government-imposed measures that regulate international trade, often involving policies, regulations, and negotiations between countries.
Recognize that tariffs and trade agreements are influenced by government decisions and political actions, which affect how businesses operate across borders.
Match tariffs and trade agreements to the appropriate PESTEL category. Since they involve government policies and political decisions, they fall under the 'Political' element.
Confirm that while tariffs have economic impacts, their origin and regulation are political, distinguishing them from purely economic or legal factors in the PESTEL framework.
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