BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -The economic environment consists of an economic system, economic policies and economic conditions prevailing in a country. Interest Rates, Taxes, Inflation, Stock Market Indices, Value of Rupee, Personal Disposable Income, Unemployment rate etc. are the factors which affect the economic environment.

Detailed explanation-2: -The term economic environment refers to all the external economic factors that influence buying habits of consumers and businesses and therefore affect the performance of a company. These factors are often beyond a company’s control, and may be either large-scale (macro) or small-scale (micro).

Detailed explanation-3: -the following which is not a part of the economic environment is-Strength of consumer spending.

Detailed explanation-4: -Economic environment examples For example, if another greengrocer opened on the next street and was able to sell their products cheaper because of lower rent or other factors, this would create competition for Bert’s Greengrocer and affect the company’s profit. This is an example of a microeconomic factor.

Detailed explanation-5: -The occupational distribution of the labour force, the structure of savings, investment and capital formation, the pattern of income distribution, the degree of urbanization etc.