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CMA Foundation · Fundamentals of Business Economics and Management · Economic and Business Environment

Tata-like textile firm 'Suvarna Fabrics' classifies the following developments: (i) a new GST rate on fabrics, (ii) adoption of automated looms by rivals, (iii) rising preference for sustainable clothing among urban buyers, (iv) a depreciating rupee raising imported dye costs. Which option correctly pairs each item with the environment type in the same order?

The correct pairing is legal-political, technological, social, economic. The GST rate is a government policy matter, automated looms are technology, consumer preference for sustainable clothing is a social trend, and rupee depreciation is an economic variable affecting import costs.

  1. ALegal-political, technological, social, economicCorrect
  2. BEconomic, technological, social, legal-political
  3. CLegal-political, social, technological, economic
  4. DLegal-political, technological, economic, social

Explanation

GST rate is a legal-political (government policy) factor. Automated looms are technological. Preference for sustainable clothing is a social/cultural trend. Rupee depreciation is an economic factor. Only the first option matches all four; the second wrongly treats GST as economic and the rupee as legal-political.

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