IMPORTANT FACTORS OF ECONOMIC ENVIRONMENT
Structure & Nature
of Economy
Economic
Conditions
Economic PoliciesGlobal Linkage
•Level of
development of
the Economy
•Sectoral
composition of
output
•Income levels
•Distribution of
income
•GDP trends
•Sectoral Growth
trends
•Demand and Supply
trends
•Price trends
•Industrial Policy
•Trade Policy
•Monetary Policy
•Foreign Exchange
Policy
•Magnitude and
nature of cross
border:
Trade flows
Financial
Flows
Conti….
IMPORTANT FACTORS OF ECONOMIC ENVIRONMENT
Structure & Nature of
Economy
Economic ConditionsEconomic Policies Global Linkage
•Trade and Bop Trends
•Foreign exchange
reserves position
•Global economic
trends
•Membership of WTO,
IMF, World Bank, trade
blocs etc.
India's inflation rate is one of the lowest in the world
Russia
14.3
EU
10.1
Brazil
8.7
US
8.3
South Africa
7.6
India
7
UK
6.6
Philippines
6.3
France
5.8
South Korea
5.7
Indonesia
4.7
Japan
3
China
2.5