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    PracticePMI PMP®PMP Business Environment Domain Practice ExamQuestion 31
    Hard1 markMultiple Choice
    Task 3: Evaluate and address external business environment changesBusiness EnvironmentExternal EnvironmentTask 3

    PMP · Question 31 · Task 3: Evaluate and address external business environment changes

    A multinational corporation is planning a project to expand into a new country. The project manager performs a PESTLE analysis and identifies that the target country has recently increased tariffs on imported technology hardware.<br/><br/>Which PESTLE factor does this represent?

    Answer options:

    A.

    Social

    B.

    Technological

    C.

    Economic

    D.

    Environmental

    How to approach this question

    Tariffs = Money/Cost = Economic. (Note: Political is also a strong contender, but usually Tariffs are categorized under Economic in PMP exams unless 'Trade War' is specified). If Political was an option and Economic wasn't, choose Political. If both, Economic is often preferred for 'Tariffs/Taxes'.

    Full Answer

    C.Economic✓ Correct
    Tariffs directly impact the cost of doing business and are a financial lever, making them an Economic factor. (They are politically motivated, but the factor itself—a tax/cost—is economic).

    Common mistakes

    Confusing with Technological because it involves 'hardware'.
    Question 30All questionsQuestion 32

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