Economic Climate

3 Key excerpts on "Economic Climate"

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  eBook - PDF

  Management of Natural Resource for Sustainable Development

  • Rathor, B S(Authors)
  • 2021(Publication Date)
  • Daya Publishing House

    (Publisher)

  Chapter 2 Climate Changes Priyanka Tiwari and Mona Singh Research Scholar (Commerce), Government T.R.S. College, Rewa, M.P. Introduction Business environment can be defined as “the forces, factors and institutions with which the businessman has to deal with to achieve its objectives”. In general words we can say business environment is the surroundings in which business exists. Whenever any businessman is operating or working then he has to interact with the customers, suppliers and he has to perform the transactions within the rule and regulations of the government. All these persons, institutions and policies form a part of business environment. Understanding all these factors, persons and institutions carefully is must every businessman. The complete awareness and understanding of business environment is known as environment scanning. Environment scanning is conducted to find out the influence of different factors and persons on the business transactions. Environment scanning can be defined as a process by which organizations monitor their relevant environment to identify opportunities and threats affecting their business. No company can survive in market by ignoring the effects of business environment. The efficient management analyses the environment and makes changes in organizational policies to integrate its activities with business environment. The most suitable example to prove the impact of business environment is the controversial case of Pepsi and Coke company. Recently a This ebook is exclusively for this university only. Cannot be resold/distributed. Consumer Organization [(Centre for Science & Environment (CSE)] has claimed to find pesticide contents in the cola drinks of Pepsi and Coke. Although government, health ministry and court have given clean chit to Pepsi and Coke company but then also both the companies are continuously advertising to prove and convince customers that these drinks are safe.

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  eBook - ePub

  Unlocking the Business Environment

  • John Brinkman, Ilve Navarro, Donna Harper(Authors)
  • 2014(Publication Date)
  • Routledge

    (Publisher)

  A growing economy will provide jobs and incomes for individuals; organisations (providing goods and services that are needed, or wanted) will have a greater opportunity to stay in business and grow. Thus, allowing the government of that growing economy to collect money from taxes to pay for various requirements, such as security, health and education for its citizens. A growing economy boosts confidence and optimism for the future among individuals, organisations and the nation. Conversely, the opposite happens if the economy shrinks (at certain levels, over a defined period of time, a shrinking economy is called a recession). Individuals may lose jobs and organisations may find it difficult to trade as individuals have less money to spend. Confidence is low. In essence – the economy can be used as a measure of the standard of living in a country.

  The economic environment of an organisation consists of the macro economy of the country, plus the microeconomic environment of the organisation. Full coverage of economic theory and principles is neither possible nor the intention of this section. Here, we deal with the economic factors in the macroeconomic environment that are apt to be of interest to an organisation. In the dynamic and increasingly complex international environment in which businesses need to operate, organisations must understand how these factors affect, or have the potential to affect the achievement of their objectives, so that they can identify and respond to opportunities and threats (current and potential), maximising any opportunities and minimising any threats.

  This chapter will explain the meaning of the widely used term economy, and discuss the main types used in the world today. It goes on to highlight the influence of the global economy, the role of trading blocks and bodies and those of financial institutions.

  The national cycles of economies are examined in relation to their effect on unemployment, economic growth

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  eBook - ePub

  Basics of International Business

  • James P. Neelankavil, Anoop Rai(Authors)
  • 2014(Publication Date)
  • Routledge

    (Publisher)

  3 Economic and Other Related Environmental Variables  

  Economic variables such as the gross domestic product, balance of payments, inflation, and other such factors have a great impact on the operations of a global company.

  LEARNING OBJECTIVES

  • To understand the environmental variables that affect international business

  • To understand the influence of macroeconomic factors on international operations

  • To understand the variables used to measure the strengths and weaknesses of individual economies

  • To understand the differences among industrialized, emerging, and developing economies

  • To understand the differences among market-based, centrally planned, and mixed economies

  • To learn about the underground, or parallel, economies and their effects on international companies

  • To understand techniques to conduct country risk analysis

  • To understand the importance of competitive analysis in international business operations

  Aside from the cultural factor, discussed in Chapter 2 , the environmental factors that affect an international business include a country’s economy, competition, infrastructure, technology, political stability, and government regulations. In this chapter, the effects of economy, competition, infrastructure, and technological factors are discussed.

  THE ECONOMY

  The last 20 years have brought the world more trade, more globalization, and more economic growth than in any such period in history.1

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