BUSINESS ENVIRONMENT

Chapter 4
ECONOMIC
ENVIRONMENT
 Chapter 4
Economic
Environment

Topic & Learning Outcome

 Economic Environment - Economic System and

Economic Policies

 Evaluate the economic policies to cope with the

changing regulations affecting business and its
profitability (CO2)

Business Environment
Himalaya Publishing House Francis Cherunilam
 Chapter 4
Economic
Environment

 Business fortunes and strategies are influenced by the economic

characteristics and economic policy dimensions. The economic
environment includes the structure and nature of the economy, the
stage of development of the economy, economic resources, the level
of income, the distribution of income and assets, global economic
linkages, economic policies etc.

Business Environment
Himalaya Publishing House Francis Cherunilam
 Chapter 4
Economic
Environment

Table: Some Economic Comparisons, 2005

Business Environment
Himalaya Publishing House Francis Cherunilam
 Chapter 4
Economic
Environment

Table: Indian Economic Reforms and Environmental Change

Business Environment
Himalaya Publishing House Francis Cherunilam
 Chapter 4
Economic
Environment

Table: Indian Economic Reforms and Environmental

Change

Business Environment
Himalaya Publishing House Francis Cherunilam
 Chapter 4
Economic
Quiz Environment

 Discover who announced credit policy/ monetary policy and usually

in which months.
 (a) The governor of Reserve Bank of India announced credit policy
in the month of March and October.
 (b) The governor of Reserve Bank of India announced credit policy
in the month of March and November.
 (c) The governor of Reserve Bank of India announced credit policy
in the month of April and October.
 (d) The finance minister of India announced credit policy in the
month of March and October.
 (e) The finance minister of India announced credit policy in the
month of March and November.

Business Environment
Himalaya Publishing House Francis Cherunilam
 Chapter 4
Economic
Environment

Question

 How different economic policies through change in

various economic factors influence the business
activity?

Business Environment
Himalaya Publishing House Francis Cherunilam