Economic environment

ECONOMIC ENVIRONMENT

1. Welcome

2. Topic : ECONOMIC ENVIRONMENT Submitted By: BENSHA C SHAJI HAFIZ SAIF SUMANT KUMAR CHARAN NAIK

3. In this topic we are going to discus about the following sections; What is Economic What is Environment Structure of Economy Various Environment Factors Features of Economic Environment Components of Economic Environment Elements of Economic Environment Classification of Economic Environment Factors Affecting Economic Environment Objectives of Economic Environment

4. “Man is a S ocial Animal” Aristotle Born, brought up and and live until death in society. Performs economic activities to satisfy his unlimited needs with limited resources which have alternative uses. Human life is influenced by many environmental factors; Economic Social Political Cultural Religious Natural

5. What is ECONOMIC ??..... ECONOMIC means “Pertaining to the production and use of income”. Main Economic Activities : Money earning and Spending

6. What is ENVIRONMENT ??........ Circumstances, Influences, Economic, Natural, Political, Regulatory and Technical factors that effects the survival, operations and growth of an organization is called Environment

7. Economic Environment Those economic factors which have their affects on the working of the business is known as Economic Environment. It includes system, policies and nature of an economic trade cycles, economic resources Level in income, distribution of income and wealth etc…..

8. The economic environment represents the economic conditions in the country where the international organization operates. Economic environment refers to the aggregate of the nature of economic system of the country Business cycle the socio-economic infrastructure etc…..

9. Economic Environment is very dynamic and complex in nature. It does not remain the same. It keeps on changing from time to time which the changes in an economy like in Govt. policies, political situations etc……

10. Structure of Economy In modern economic phases are somewhat differently expressed by 4 degrees of activity. Primary Stage Secondary Stage Tertiary Stage Quaternary Stage

11. 1. Primary Stage It involves the extraction and production of raw materials such as corn, coal, wood and iron. 2. Secondary Stage It involves the transformation of row or intermediate materials into goods.

12. 3. Tertiary Stage It involves the provision of services to consumers and businesses such as baby-sitting, cinema and banking. 4. Quaternary Stage It involves the research and development needed to products from natural resources and their Subsequent by-products.

13. Note : Education is sometimes include in quaternary stage Various Environment Factors Such as ; Economic Socio-cultural Political Technological Demographic International A ffect the business and its Working. out of These factors economic environment is the Most important factor. }

14. Features Of Economic Environment Directly related with economic activities Impact of non economic factors Impact of basic infrastructure Impact of ideology of the people Availability of capital Economic disparities Economic planning Public morality Ideology of the Gotland economic system Directives of the Govt .

15. Components of Economic Environment Income and Wealth : Income in an economy is measured by GDP,GNP, and Per Capita Income. High values of these factors shows a progressive economic environment. Employment levels : High employment represents a positive picture of the economy. However there are many forms of unemployment including partial employment and disguised unemployment.

16. Productivity : This is the output generated from a given amount of inputs. High levels of productivity supports the economic environment

17. Elements of Economic Environment Economic Conditions Economic Systems Economic Policies International/Global Environment Economic Legislations It has five main components

18. Classifications of the Economic Environment Micro Macro Micro Economic : It includes the economic environment of a particular industry firm or household and its primarily concerned with price determination of individual factors . The main consideration from a microeconomic perspective is the efficient allocation of resources. This is necessary to maximize total output.

19. Macro Economic : It includes all the economic factors totality. The main consideration here is the determinations of the level of income and employment in the economy. Over the course of the 20 th century the focus has shifted from cities and countries to the global economy being the chief economic unit

20. Factors Affecting the Economic Environment The Economic Environment of a nation as well as the world is impacted by ; Inflation and Deflation Interest Rates Exchange Rates Monetary and Fiscal policy

21. Interest Rates : It determines the lost of borrowing and the flow of money towards business. Exchange Rates : This impacts the price of imports the profits made by exporters and investors and employment levels.

22. Monetary and Fiscal policy : This helps in attaining full employment price stability and economic growth. The economic environment is also influenced by various political, social and technological factors. These include a change in Govt. and the development of the new technology and business tools.

23. Objectives of Economic Environment Proper functioning of an economy Knowledge of new opportunities and resources Study of environmental factors Removal of obstacles and challenges Optimum use of environment Minimizing ill effects

24. Topic : ECONOMIC ENVIRONMENT CONCLUSION

25. Thanks All THE END