Final answer:
The two dimensions that determine the level of environmental uncertainty are the number of factors in the external environment and the rate of change of these factors.
Step-by-step explanation:
The two dimensions that determine the level of environmental uncertainty are the number of factors in the external environment and the rate of change of these factors. When firms decide where to locate a new factory, they consider various factors such as labor and financial capital costs.
proximity to suppliers and customers, quality of transportation and communication networks, level of taxes, and the competence and honesty of the local government. While environmental regulations are also a factor, their costs are typically only a small percentage of a large industrial plant's overall costs.