The business environment consists of a range of major influences that are outside a business. These include political, social and legal channelizes that affect a business. I will be looking at how two economic environmental problems influence a business.
Economic Environment: The join of economic factors, such as employment, income, inflation, interest rates, productivity, and wealth, that influence the buy behavior of consumers and institutions. The economy is made up of millions of individual stopping point nettlers who buy and sell goods, borrow and lend money, and raise taxes and change interest rates. From the business point of view, the most important of these decision makers are:
* Consumers
* Suppliers
* Bankers and other lenders
* The government
Although the economy is made up of millions of tell apart decision makers, there are clear patterns to the types of decisions they make. For example, at times of consumer confidence, most consumers will raise their levels of spending and businesses will out harvest-festival their supply of goods.
Impact of changes in the economic environment
harvest-tide: The enemy of a time out is a period of economic growth. Growth occurs when more than goods are being produced and consumed, and incomes are rising. Economic growth is associated with a ripple effect because people have more money to spend, they will buy more goods. Producers will make more goods. They will hire more labour and redact in new machinery and equipment. This leads to increase in demand for firms producing machinery and equipment so they take on more labour.
Recession is a pregnant decline in activity across the economy, lasting endless than a few months. The technical indicator of a recession is two consecutive quarters of negative economic growth as measured by a countrys gross house servant product (GDP). Recession occurs...If you want to get a well(p) essay, order it on our website: Orderessay
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