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Attempt the following: Economic Environment. - Organisation of Commerce and Management

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Question

Attempt the following:

Economic Environment.

Answer in Brief
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Solution

The economic environment comprises economic condition economic policies and economic systems which are the important factors influencing development and trade cycles, national income, etc.

(1) Economic Condition: If refers to the present state of the economy of a country or region based on the gross domestic product, per capita income, availability of capital, etc.
(2) Economic Policies: The government frames economic policies from time to time influencing business activities. In order to control the business in the interest of the politics. e.g.- Intestinal policy, monetary policy foreign investment policy, etc.
(3) Economic System: It refers to the scope of private business and extent of government regulation on economic activities determines the nature of the economic system i.e. capitalist social or mixed economic

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Chapter 7: Business Enviroment - Exercise Q.7 [Page 152]

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