Economic Factors Affecting The Business Environment-Economic Elements Of A Business

BUSINESS ENVIRONMENT- ECONOMIC FACTORS Business condition incorporates all the inner and outer variables that influence the everyday elements of the business. The inward factors incorporate factors inside the business. It incorporates the workers, physical offices, targets and objectives, investors and so on .The outside elements are of two sorts: Micro and Macro aspects. Financial elements incorporate the monetary framework in which the business works. The primary organizations in which the monetary components are vital are banking, fund, Ventures, Exchanging. Despite the fact that these are the fundamental organizations, practically every different business has its monetary condition. It manages things which bargains in money related terms.

Yet, one nation may not be a dynamic member but instead simply be a facilitator. Economic factor is very important for business, Banking, Finance, Investments, trading. Any change in economic factor can have an impact on business and companies. Economy is about money. Economic factor very dynamic compared to all other factors The above factors which impact the business Venture will depend upon the economic ideology and Philosophy of its Government.The business will have to survive competitively within the environment Nationally, Internationally and Globally  Today, most of the economies of various countries are inter-connected, related and inter dependant. A country can generate wealth in association with one or more other countries or all the countries in the world under a win-win situation.  Wars and world wars destroyed very many economies in the world.  National Economics It is about the domestic economic decisions and their influence on business environment National Economies are identified as GDP, PPP etc  Bi-Lateral Economics It is between two identified countries that mutually consent to engage in economic relations .Strategic Alliances between those two countries. They may follow large scale investments (FDI) and

GDP GDP is the total market value of all officially recognised final goods and services produced in a country within the geographic limits regardless of the producers` national identity in a given year.The income approach (GDI) .The expenditure approach (Product is counted when sold)—GDP equals to total consumer, investment and government spending plus the value of exports minus the value of imports. GNP GNP is based on ownership of production.GNP is the total value of all final goods and services produced within a nation in a particular year plus the income earned by its citizens, including those located abroad , minus income of non-residents located in that country.  National Income National Income is the measure of the total income earned by the four factors of production (labour, capital, land and entrepreneurship) in a given period, usually a year. It measures the monitory value of the flow of output of goods and services produced in an economy over a period of time. National income is an indicator of the rate of economic growth, changes in average living standards, changes in the distribution of income between groups within the population. Per capita Income The per capita income is the average of personal income of the people of a