please answer number 7 and 8 with good explanation

7. Mr. Santos, an importer of raw materials from Hong Kong, was sad to know that the Government has increased tariffs for his imported materials. What is the classification of this business obstacle? A. Internal Environment B. External Environment C. International Environment D. None of the Above 8. In any industry, what motivates potential rivals to enter the market? A. Average Profits B. High Profits C. Low Profits D. Profits