Which of the following factors is considered under the 'Economic' component of PESTLE analysis?
Government tax policies
Inflation rate and interest rates
Technological innovation
Environmental regulations
Answer and explanation
The correct answer is B: Inflation rate and interest rates.
In PESTLE analysis, the Economic component covers macroeconomic factors such as inflation rates, interest rates, exchange rates, economic growth, and unemployment levels. These factors directly influence purchasing power, cost of capital, and overall business profitability.
