CSEET · Economic and Business Environment · Business Environment
A company wants to analyse the effect of the Insolvency and Bankruptcy Code, data protection rules and consumer protection law on its operations, while a separate team studies inflation and interest rates. Which pair of PESTLE dimensions is being examined respectively?
The pair is Legal and Economic. Insolvency, data protection and consumer protection laws are legal factors, since they are statutes and regulations. Inflation and interest rates are economic factors describing macroeconomic conditions. Political, social, technological or environmental dimensions do not describe either set of factors.
- APolitical and Social
- BLegal and EconomicCorrect
- CTechnological and Legal
- DEconomic and Environmental
Explanation
The IBC, data protection and consumer protection rules are statutes and regulations, so they fall under the Legal dimension. Inflation and interest rates are macroeconomic variables, so they fall under the Economic dimension. Political would cover government stability and policy direction, which is not what is described.
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