Describe any two factors of economic environment.

1.	Describe any two factors of economic environment.
Answer» Economic environment has direct influence on business. 1. The Economic System : Economic activities depend upon the nature of economic system which are: (a) Capitalist economy : e.g. U.S.A. (b) Socialist economy : e.g. China (c) Mixed economy : e.g. India. 2. Economic Policies : The various economic policies of the government has a direct influence on economic environment. For e.g. import and export policy, educational policy, agricultural policy, industrial policy, foreign investment policy, etc. 3. Economic Condition : The stage at which the growth stands, employment rate, rate of interest, etc. All those determine development of the country.

Answer»

Economic environment has direct influence on business.

1. The Economic System : Economic activities depend upon the nature of economic system which are: (a) Capitalist economy : e.g. U.S.A. (b) Socialist economy : e.g. China (c) Mixed economy : e.g. India.

2. Economic Policies : The various economic policies of the government has a direct influence on economic environment. For e.g. import and export policy, educational policy, agricultural policy, industrial policy, foreign investment policy, etc.

3. Economic Condition : The stage at which the growth stands, employment rate, rate of interest, etc. All those determine development of the country.

Discussion

No Comment Found

Related InterviewSolutions

Which factors are included in internal environment?
Write a word or a term or a phrase which can substitute each of the following statement:The environment of business which consist of the methods and techniques adopted for production.
In which environment are the methods and techniques of production included?
……………….. environment consist of the methods and techniques adopted for production. (a) Legal (b) Political (c) Technological
The policies decided by shareholders, managers, labour unions and the employees are known as ……………….. (a) Internal environment factors (b) External environment factors (c) International factors
Find the odd word out:1. Legislature, Government Shareholders.2. Social, Employees, Legal.
What are the Positive Effects of Privatization.
Which of the following was not a reason of privatization?(A) Bureaucracy(B) Absence of accountability(C) Growing influence of labour unions(D) Dearth of capital
Enlist reasons for inefficient public sector units.
Enlist positive and negative effects of privatization.