4. Ford is considering moving its Taurus plant from Edison, NJ to Buenos Aires in Argentina, but is intimidated by the fact that the inflation rate in the nation is too high, and their dollar investments may be compromised. Which segment of the general environment does this statement refer to? a. Corporate-financial b. Business-exchange c. Political-legal d. Economic

b. Business-exchange

Explanation:

In making business decisions, several factors tend to affect the outcome of decisions. Business-exchange factors affecting a business would take into consideration factors such as inflation rates, interest rates, and competitions. Higher inflation rates will translate to lower competitiveness of goods and a decrease in the demand for products. Lower inflation rates, however, will result lead to an increase in the demand of the country's currency for the purchase of its goods.

So, when Ford considers inflation rates before making the decision to move to another location, it is considering the business-exchange environment.

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