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Task 3: Evaluate and address external business environment changesBusiness EnvironmentExternal EnvironmentTask 3
PMP · Question 31 · Task 3: Evaluate and address external business environment changes
A multinational corporation is planning a project to expand into a new country. The project manager performs a PESTLE analysis and identifies that the target country has recently increased tariffs on imported technology hardware.<br/><br/>Which PESTLE factor does this represent?
A multinational corporation is planning a project to expand into a new country. The project manager performs a PESTLE analysis and identifies that the target country has recently increased tariffs on imported technology hardware.<br/><br/>Which PESTLE factor does this represent?
Answer options:
A.
Social
B.
Technological
C.
Economic
D.
Environmental
How to approach this question
Tariffs = Money/Cost = Economic. (Note: Political is also a strong contender, but usually Tariffs are categorized under Economic in PMP exams unless 'Trade War' is specified). If Political was an option and Economic wasn't, choose Political. If both, Economic is often preferred for 'Tariffs/Taxes'.
Full Answer
C.Economic✓ Correct
C
Tariffs directly impact the cost of doing business and are a financial lever, making them an Economic factor. (They are politically motivated, but the factor itself—a tax/cost—is economic).
Common mistakes
Confusing with Technological because it involves 'hardware'.
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