An industry is expected to experience increased environmental complexity if ________.
A)a critical resource becomes unavailable due to a natural disaster
B)rigid rules and standards control the industry
C)the government approves high customs taxes on imported goods
D)a major producer buys out some of its competitors

Question

Quizplus · Accepted Answer

If a critical resource becomes unavailable due to a natural disaster, the industry will become more complex as firms will need to find alternative sources for that resource or adjust their production processes. This can lead to disruptions in the supply chain and increased uncertainty for firms operating in that industry. Rigid rules and standards may lead to increased costs and compliance burdens, but they do not necessarily make the industry more complex. High customs taxes on imported goods may also lead to increased costs for firms, but this does not necessarily make the industry more complex. The acquisition of competitors by a major producer may lead to consolidation within an industry, but it does not necessarily make the industry more complex.

An Industry Is Expected to Experience Increased Environmental Complexity If