Economic environment

By-Ashish

Sharma

Shekhawati Group of institutions.

Classification of economic environment

A.

B.

Microeconomic Environment-it includes the economic environment of a particular industry,firm or household and is primarily concerned with price determination of individual factors. The main consideration from microeconomic Perspective is the efficient allocation of resources. Macroeconomic environment-it includes all the economic factors in totality. the main consideration here is the determination of the levels of income and employment in the country here the focus is shifted from cities and countries to the global economy being the chief economic unit .

Components of Economic Environment

1. i. ii. iii. iv. v.

Following are mainly included in the economic conditions of a country: Stages of business cycle National income,per capita income and distribution of income. Rate of capital formation Demand and supply trends Inflation rate in the economy

Components of Economic Environment

Industrial growth rate ,exports growth rate. vii. Interest rate prevailing in the economy viii. Trends in industrial sickness ix. Efficiency of public and private sectors x. Growth of primary and secondary capital markets,and xi. Size of market
vi.