Question

Carlos has a Mexican handmade craft import business. He read an article in the newspaper that said the government is working to limiting imports from Mexico in order to increase employment within the United States. He is concerned that he will be unable to get products for his store, and that if he can get products, they will cost him much more than they did prior to the new trade restrictions. Which of the following forces in the external marketing environment is the primary source of his concern?

1) Economic factors
2) Political factors
3) Social factors
4) Technological factors

Answer 1

Carlos's concerns about trade restrictions impacting his import business stem from political factors, as governmental actions are the main influence on changes in trade policies that might lead to increased costs and sourcing challenges.

option 2. Political factors is correct answer.

Step-by-step explanation:

The primary source of Carlos's concerns about his Mexican handmade craft import business in light of potential new trade restrictions by the government is political factors. The government's decision to limit imports from Mexico to increase employment within the United States is an example of how political decisions can directly impact international trade and the operations of businesses that rely on imported goods.

Implications of such trade restrictions include increased costs for importing products and potential difficulties in sourcing goods for Carlos's store. Changes in trade policies, such as the imposition of tariffs or quotas, are driven by the political climate and have a significant impact on businesses involved in international trade.