Question

Fill in the blank
Industrial policy, monetary policy and fiscal policy are elements of _________ environment of business.

Answer 1

external

The Industrial policy, Monetary policy, and the Fiscal policy are the policies implemented by the Government. The industrial policy lats down the rules and regulations relating to the establishment, functioning, expansion, management and growth of the industries.

The monetary policy determines the rate of interest and foreign exchange in the country. The fiscal policy determines the factors. budget and the surplus or deficit of payments. All these are out of the control of the business and are thus external factors.