Do economic factors have more important effect on businesses and their environment than th non-economic factors? Justify.(word limit 300)
Answers
Do economic factors have more important effect on businesses and their environment than th non-economic factors? Justify.(word limit 300)
In order to understand the nature of the effect of both subject matters, one needs to be fond of them. Economic factors are those factors which are the fundamental factors that are related to the market,which help to do the analysis and look at the trends and the functioning of the market place and or industry. Whereas the non- economic factors are all the rest of the factors that may influence the work.
Economic factors may be the governmental policy, labor, cost of production, interest rate, etc.
The non-economic factors may be convenience, health, innovation, etc.
Its arguably in the favor of economic factors, that in fact they are the ones which have a direct effect on the business whereas non-economic factors may affect some businesses and may not affect others.
These economic factors directly affect the pay structure, the employers needs, the stakeholders decisions and impact on profit and loss where as in non economic factors, they do not have any necessary effect, they come with time, or they come with personal choices of the labor involved.
If there is governmental policy of not making cigarettes, you simply cannot, but if an employee faces issues of convenience in making that product, that only affects the amount of labor.
The economic factors of business normally reflect the prevailing economic system and thereby it gives more emphasis on macro-economic environment.
Non-economic factors are as important as economic environment for influencing the business activity of the country.
All non-economic issues related to business are included in non-economic environment of a country.