 The

legal environment plays a very important role. The laws of the country, the judicial system, and the laws which effect business are important.  The political/legal environment includes : Local Issues : Global Issues: - Regulatory - Trade Agreement - Taxes - Political Issues

 Economics

environment consists some of economics interactions element – demand dynamics, supply situation, pricing factors, degree of competitiveness, and impact of profitability. The economics environment includes: -Microeconomics -Macroeconomics

A branch of economics that studies how individuals, household, and firms makes decisions to allocate limited resources, typically in markets where goods or services are being bought and sold Microeconomics examines how these decisions and behaviour affect supply and demand for goods and services, which determine the supply and demand of goods and services.

 Is

a branch of economics that deals with the performance, structure, and behaviour of a national or regional economy as a whole.

 Macroeconomists

develop models that explain the relationship between :

Y = C + I + G + (X M)
Y C I G X M = = = = = = national income public consumption private investment government expenditure export import

 Relating

to both social and cultural matters. The sociocultural environment includes ; Demographic Trends : Describe the changes in demographic in a population over time such as :
Race Age Income Disabilities Mobility Educational Background Home ownership Employment Location

 Movement

of an individual or group one class or social status to another. the points of reference is an individual’s class or status of social origin and social mobility occurs when later class or status position differ from those of origin

 Usually,

 Technology

is a consequences of science and engineering. Technology is a term with origins in the Greek “technologia” and “logia”. However, a strict definition is elusive; “technology” can refer to material objects of use to humanity, such as machines, hardware or utensils, but can also encompass broader themes, includings systems, methods or organization, and techniques .

The technological environment includes;  Innovation – the introduction of something new  Imitation – individual observes and replicates another’s.

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