What might be a positive effect of new environmental protection laws?

Prepare for the SQA Higher Business Management Exam. Enhance your skills with dynamic flashcards and practice questions. Explore hints and explanations to ace your exam!

The positive effect of new environmental protection laws often includes an enhanced public image for businesses, which can lead to attracting more customers. When companies adopt sustainable practices and comply with environmental regulations, they signal a commitment to social responsibility and eco-friendliness. This positive branding can resonate with consumers who prioritize ethical and environmentally-conscious choices, thus potentially increasing customer loyalty and attracting new clients who value sustainability.

As for the other options, while increased operational costs may be a possibility due to the implementation of new regulations, this is not a positive effect. Similarly, lower wages for employees or heightened competition among businesses could arise as a consequence of these laws, but they do not represent a constructive outcome. In fact, these aspects may lead to negative consequences for both employees and overall market dynamics. Hence, the enhanced public image stands out as a beneficial and constructive outcome amidst the various challenges that new environmental regulations may introduce.

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