Answered: Select one of the external factors…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Select one of the external factors discussed in the text that influences business.

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Let We show that that The company I have chosen is Nestle Maggi and the external factor is Food and Drug Administration (FDA) regulations. The company has been accused by legal authorities of being high in monosodium glutamate (MSG) and lead, which is harmful to brain development, especially in children. As per FDA guidelines, food products should have limited MSG content and Maggi was found to have much higher content than the permissible content. This was deemed illegal and the court gave strict instructions to Nestle to stop manufacturing the product.

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