Select ALL examples of external influences on a business.

### Why this is right - **A government change to import tariffs** is external because a firm does not set national trade policy. - **A shift in the exchange rate caused by policy** is external because firms must respond to the changed economic conditions. - **A labor union's actions** are external pressures on an organization, even though managers may negotiate with the union. ### The concept External influences arise outside the firm’s direct authority. They include government policy, foreign trade conditions, economic trends, labor and capital markets, political conditions, and social or regulatory organizations. A decision to retain or reinvest profit is internal because management makes it. ### The other options - **A firm's decision to retain or reinvest profit**: this is an internal capital and profit-management choice. ### Terms - **Tariff**: a tax or duty imposed on imported goods. ### Remember A firm can respond to external conditions, but it does not directly control them.