Economic Environment & Socio-cultural Environment

Economic environment refers to the nature of economy , economic policies of the govt., labour, capital, etc It is greatly influenced by the government through fiscal policies, economic controls, industrial policy and import-export policy.

Industrial licensing liberalized ; mandatory only for 6 categories of industries. Entry of MNCs has been made easier leading to reduction in scarcity of goods and created competition. Indian companies can raise funds through GDRs and ADRs. Airlines were giving services on international routes

The socio-cultural environment of a nation determines the value system of the society which in turn affects the functioning of business. Socio-cultural environment determines the code of conduct the business should follow.

Consumers org keep a watch on the activities of business firms. In case of unfair practices, they file complaints in the consumer courts. Movement for improving education facilities for girls leading to increase in the demand for school dress, books , etc. Demand for consumer durables like TVs, Ac, computers, cars, etc. Demand for fast foods on the rise.