EEconomic environment is influenced by
Answers
The economic environment consists of external factors in a business market and the broader economy that can influence a business. ... Macroeconomic influences are broad economic factors that either directly or indirectly affect the entire economy and all of its participants, including your business.
Economic environment is influenced by the following factors:
- The term economic environment refers to all the external economic factors that influence buying habits of consumer and businesses.
- Therefore, affect the performance of a company.
- These factors are often beyond a company's control and may either large-scale or small-scale.
Microeconomic factors:
Microeconomic factors do not effect the whole economy . below are some microeconomic factors that may influence of business:
- Competitors
- Demand
- Market size
- Suppliers
- Supply
For example, through tetail stores, distributors, the internet, etc..
Macroeconomic factors:
The macroeconomic environment, on the other hand, refers the things that affect the entire economy.
Macroeconomics is concerned with general or large-scale economic factors, such as;
- Unemployment
- Inflation
- Interest rates
- GDP growth
- Taxes
- Levels of consumer confidence
Business people cannot control their economic environment. However, they can evalute conditions in the marketplace before deciding whether to proceed with a plan or project.