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Firstchapter 090714220107 Phpapp02 PDF
Firstchapter 090714220107 Phpapp02 PDF
ENVIRONMENT
Environment
The environment is the result of
changing social and economic and
political forces which creates
challenges, opens up new
opportunities and affects the strength
and weaknesses of various business
segment.
Meaning of Business
In general business refer to all activities
that are being organized and carried on
with an important purpose, viz; earn profit
by supplying goods and services to
consumers to satisfy their felt needs.
Modern business covers a complex field of
industry and commerce which involve activities
related to both production and distribution.
These activities on the one hand satisfy society’s
needs and desires and on the other hand brings
profit to business firms. Business include
activities connected with production, trade,
transport, finance, banking, insurance,
advertising, and certain other activities related to
industry and commerce.
DEFINATION OF BUSINESS
Trade Policy
Corruption rule of law Human resources
and
Monetary Policy governance including
business
law and regulations
Fiscal Policy
Industrial Policy
Among various economic activities, industrial
activity is more directly related to business. In
fact, the present day corporate business has
grown as an extension of industrial activity.
Therefore, for analyzing economic environment
of business, industrial policy of the government
has to be created examined.
Trade Policy
Trade policy is an important factor in the
economic environment of business. The
basic objectives of trade policy are to
promote exports, regulate imports,
improve terms of trade, enhance export
competitiveness and create conditions of
export-led growth.
Monetary Policy
By monetary policy we mean the
regulation of the money supply and the
control of the cost and availability of credit
by the central bank of the country through
the use of deliberate and discretionary
action for achieving the objectives of
general economic policy.
Monetary Policy
The main objectives of monetary policy are:
Maximum feasible output
High rate of economic growth
Fuller employment
Price stability
Greater equality in the distribution of income and wealth
Healthy balance of payments