Economic environment

This Power Point Presentations will describe various components of Economic Environment.

1. Economic Environment The economic environment consists of macro level factors related to means of production and distribution of wealth in a country or region. These factors have a significant impact on the demand and supply of a business of an organization. The economic conditions /environment includes The nature of the economy The stage of development of the country Economic Resources The level of income The distribution of income and assets etc

2. Components Of Economic Environment Economic Conditions – Economic policies of a business unit are largely affected by the economic conditions of an economy. Any improvement in the economic conditions such as standard of living , purchasing power of public , demand and supply etc. Economic Policies – It refers to the action that govt. take in the economic field. Mainly there are two type of economic policies of government – i.e. Monetary Policy and Fiscal Policy. Economic policies affect the different business units in different ways. It may or may not have favourable impact on a business unit.

3. International n Business Environment- If any business enterprises is involved in foreign trade ,then it is influenced by not only its own country economic environment but also the economic environment of the country from/to which it is importing/exporting goods. There are various rules and guidelines for these trades which are issued by many organizations like World Bank, WTO and United Nations etc. Economic System- An economic system of a nation or a country may be defined as a framework of rules , goals that controls economic relations among people of the society

4. Economic Factors Affecting Business Demand and Supply Money and Banking Income and employment Economic growth and development

5. Recent Economic Environmental Facts Of India Number of industries reserved for public sector – 03 ( Atomic Energy , Rail Transport and mining of some specified minerals ) Micro , small and medium enterprise (MSME’s) Contribution a) in country’s GDP – 8 % b) in manufactured output – 45 % c) in country’s export Main Food crop of India - Rice

6. Foreign currency assets -316.132 billion dollar Gold Reserve – 19.038 billion dollar Exports- $ 312.610 billion Imports - $ 450.068 billion India’s service sector remains the major driver of economic growth contributing 72.4 % of GDP growth in 2014-2015. India has the second fastest growing services sector after China The 3.61 crore MSME’s contribute 37.5 % of country’s GDP