Question

QuikCute is a hair care supply company in the United Kingdom. When QuikCute ventured into the Chinese market by setting up a manufacturing plant in China, the activists in China rallied against the company claiming that it was exploiting the cheap labor available there. They demanded that the manufacturing plant be closed down. Which foreign environment uncontrollable is posing a challenge for QuikCute?

Answer 1

Answer:

political and legal forces

Explanation:

Foreign environment uncontrollables are environmental factors that exist in a foreign country where a firm is operating or is setting up its operations. The firm has little or no control over the environmental factors that exist in foreign countries. The most important ones include:

• political and legal forces
• economic climate
• different cultural forces
• technological level
• geography and infrastructure
• distribution structures

In this case QuikCute is trying to benefit from the economic climate in China, since it is a developing country with lower wages, but at the same time faces challenges from the political and legal forces.