CAF-7 · Chapter 5 · Question 14 of 15
A local pharmaceutical company identifies that a new global trade agreement will soon allow massive international competitors to export cheap alternative medicines into the country without paying tariffs. In a SWOT analysis, this upcoming regulatory change is classified as a:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: D) Threat
Explanation
Changes in the external political, legal, or economic environment that pose a danger to the company's market share, profitability, or survival are classified as Threats.
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