Mr Ajay is the divisional manager of ABC Tea Ltd. For some time since past a restriction has been imposed on export of tea. It is evident that the company's export business depends on the Government policy. Recently there has been a change of Government in the centre. As soon as the new Government took over, it removed the restriction imposed on the export of tea. With the coming of this news the division under Mr Ajay heaved a sigh of relief.(a) The change of Government is having its impact on the two dimensions of Business Environment. Identify them.(b) Identify one of the characteristic of 'Business Environment' described.(2 marks) *

M. cotteleer electronics supplies microcomputer circuitry to a company that incorporates microprocessors into refrigerators and other home appliances. one of the components has an annual demand of 235 units, and this is constant throughout the year. carrying cost is estimated to be $1.25 per unit per year, and the ordering (setup) cost is $21 per order. a) to minimize cost, how many units should be ordered each time an order is placed? b) how many orders per year are needed with the optimal policy? c) what is the average inventory if costs are minimized? d) suppose that the ordering cost is not $21, and cotteleer has been ordering 125 units each time an order is placed. for this order policy (of q = 125) to be optimal, determine what the ordering cost would have to be.