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1. Technological factor

Advances in technology can help improve productivity of labour,also as reduce transportation costs,distribution costs,communication costs and production costs.Examples of it include changes that affect the production and distribution of a product or services.

2. economic factor

Economic factor affects the overall consumption and investment in a business. A stable economy attracts firms that wish to do business.An unstable economy however increases business rioisks and even deters investment. Examples of it include national income, taxation policy, foreign exchange policy,inflation rate,etc.

3. physical factor

It refers to the physical location and natural environment which directly affects the economic devbelopment of the countries or a region.A favourable physical environment with well-planned infrastructures likes the airport and transport facilities can attract firms.

4. Social and cultural factor

Social factor affects the productivity and labour supply.Examples of it includes the population structure,language ability,education level,etc.Cultural factor affects trhe taste and preferences of costumers.Examples of it include whether a country encourage women to go out and work and enphasis on virtue of hard work.

5. Political factor

This is related to the political system,laws and regulations of a country.Political systems can be classified as aurhoritarian and democratic. Laws and regulations' examples include licensing laws,customes laws,and labour laws,sorry it should be licensing regulations. A country with sound legal system and stable politial condition can attract investments as it enhances investors' confidence.

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Q: What are the factors affecting business decisions?
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