What Is the Economic Environment in Business_ - Definition, Importance & Factors - Video & Lesson Tr

What Is the Economic Environment in Business_ - Definition, Importance & Factors - Video & Lesson Tr

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What Is the Economic Environment in Business? - De±nition, Importance & Factors Lesson Transcript The economic environment in which a business operates has a great in±uence upon it. In this lesson, you'll learn about the economic environment in business, including its various factors and importance. A short quiz follows. Economic Environment De²ned The economic environment consists of external factors in a business market and the broader economy that can in±uence a business. You can divide the economic environment into the microeconomic environment, which a³ects business decision making - such as individual actions of ²rms and consumers - and the macroeconomic environment, which a³ects an entire economy and all of its participants. Many economic factors act as external constraints on your business, which means that you have little, if any, control over them. Let's take a look at both of these broad factors in more detail. Macroeconomic in±uences are broad economic factors that either directly or indirectly a³ect the entire economy and all of its participants, including your business. These factors include such things as:
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