Components of Business Environment

The Business Environment is broadly classified, into two categories.

Economic Environment in the International Business

The international economic environment can be described as the global factors that are outside
of the control of individual organizations but that can affect the way that businesses operate.
These factors include unemployment rates, inflation rates, and labor costs. External factors
found in the macroeconomic environment can also affect organizations' decision-making and
performance activities. They include cultural and social influences, legal issues, demographics,
and political considerations, as well as changes in the natural environment and technology.