Which of the following statements is true of the environmental forces that affect strategy formulation?
A) Socialist economic systems normally levy light taxes on business profits.
B) Countries that excessively spend on R&D tend to have lower levels of prosperity.
C) Approval of the host government is almost always necessary for making direct investments.
D) Free-market economies tend to levy high taxes on business profits.

Question

Quizplus · Accepted Answer

Approval of the host government is almost always necessary for making direct investments, as governments have the power to regulate and restrict foreign investment in their countries. This is a key environmental force that affects strategy formulation.

None of the other statements are true. Socialist economic systems may actually levy higher taxes on business profits, countries that invest in R&D tend to have higher levels of prosperity, and free-market economies are generally known for lower taxes on business profits.

Which of the Following Statements Is True of the Environmental