ExpertEasy1 markMultiple Choice
CPA · Question 07 · Area 1: Business Analysis
GlobalCorp is conducting a PESTLE analysis to enter a new market in Country Z. The analysis reveals that Country Z has recently passed strict data localization laws requiring all customer data to be stored on local servers. Under which PESTLE category should this factor be primarily classified?
GlobalCorp is conducting a PESTLE analysis to enter a new market in Country Z. The analysis reveals that Country Z has recently passed strict data localization laws requiring all customer data to be stored on local servers. Under which PESTLE category should this factor be primarily classified?
Answer options:
A.
Political
B.
Technological
C.
Social
D.
Legal
How to approach this question
PESTLE stands for Political, Economic, Social, Technological, Legal, Environmental. Distinguish between Political (government policy/stability) and Legal (specific laws/regulations).
Full Answer
D.Legal✓ Correct
Data localization requirements are statutory laws. Therefore, they fit best under the 'Legal' factor of PESTLE. Note: In PEST (4 factors), this would fall under Political-Legal, but in PESTLE, it is Legal.
Common mistakes
Classifying laws as Political (which is broader) or Technological (because it involves data).
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