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Factors like political unrest,natural calamity, availability of raw materials affect a business. While in the former two, the business house has little to do and watch helplessly and wait for the outcome. Shortage or non availability of raw material can be overcome by import,which will add to the manufacturing cost. Even ups and downs in international financial markets have repercussion on domestic market. The exporters sit idle for lack of orders and the importers are to pay high import duty for exchange rate fluctuation.

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10y ago
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15y ago

As prices go up, the company's expenses go up as a result. The money distribution of the company becomes unbalanced, so they have to re-balance it by taking away from the pay of their employees, or if that's too much trouble to lay off workers and not have to give out as much money.

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9y ago

Economic factors that effect the business environments include the following:

  • Government policy
  • Interest Rates
  • Per capita Income which has a huge impact on business environment by changing their consumption behavior
  • Privatization policy of the government
  • Instability in the economy due to bad political conditions in the county affects the business environment
  • Waste Management
  • Customs duty structure
  • Freight charges
  • Foreign investment
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15y ago

Trade associations are bodies that represent particular industries. its aim is to represent organizations and costomers in this business industry.

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14y ago

help unemployment

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13y ago

The law of Supply and demand.

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13y ago

Unemployment rate

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Q: What are factors that affect economy?
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