Seeing the increasing demand for automobiles in Buleti, ‘Veso Cars’, a global car manufacturing company planned to expand its operations and sell its…

Seeing the increasing demand for automobiles in Buleti, ‘Veso Cars’, a global car manufacturing company planned to expand its operations and sell its cars there. However, the government of Buleti imposed high import duties on foreign made cars to protect local manufacturers from foreign competition. This attitude of the Buleti government towards foreign car manufacturers increased the cost of importing cars, making it less affordable for ‘Veso Cars’ to sell its cars at competitive prices in Buleti. The component of business environment highlighted above is :