Give an example how economic environment affects a business
enterprise
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Economic factors that commonly affect businesses include consumer behaviour, employment factors, interest rates and banking and inflation and overall economic indicators. They also include several legal regulations in the country, which are described in: Legal factors affecting business.
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The economy includes all activities in a country concerned with the manufacturing, distribution and the use of goods and services. The economic climate has a big impact on businesses. The level of consumer spending affects prices, investment decisions and the number of workers that businesses employ.
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