Question

What are the major components of economic environment?

Answer 1

The major components of economic environment are :

(i) Economic conditions: These reflect the economic state of affairs that possibly influences economic development of country/industry/region/sector.

(ii) Economic policies: These are the course of actions framed by the government, which attempt to influence or control the behaviour of an economy.

(iii)Economic systems: These systems focus on organising the distribution and allocation of a country's goods and services among individuals in an economy.