The document discusses the economic environment, defining it as the economic factors that influence business operations. It covers topics such as the components and structure of an economy, the factors that make up the economic environment, and how it is classified into micro and macro levels. The economic environment is influenced by income, employment, productivity, inflation, interest rates, exchange rates, and monetary/fiscal policies. Understanding the economic environment is important for businesses to identify opportunities and challenges and function properly within the economic system.

1. Welcom
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2. Topic :
ECONOMIC
ENVIRONMENT
Submitted By:
 BENSHA C SHAJI
 HAFIZ SAIF
 SUMANT KUMAR
 CHARAN NAIK

3. In this topic we are going to discus about the following sections
a) What is Economic
b) What is Environment
c) Structure of Economy
d) Various Environment Factors
e) Features of Economic Environment
f) Components of Economic Environment
g) Elements of Economic Environment
h) Classification of Economic Environment
i) Factors Affecting Economic Environment
j) Objectives of Economic Environment

4. “Man is a Social Animal”
Aristotle
 Born, brought up and and live until death in society.
Performs economic activities to satisfy his unlimited needs
with limited resources which have alternative uses.
Human life is influenced by many environmental factors;
 Economic
 Social
 Political
 Cultural
 Religious
 Natural

5. What is ECONOMIC ??.....
ECONOMIC means
“Pertaining to the production and
use of income”.
Main Economic Activities : Money earning and Spending

6. What is ENVIRONMENT ??........
Circumstances, Influences, Economic, Natural,
Political, Regulatory and Technical
factors that effects the survival, operations
and growth of an organization is called
Environment

7. Economic Environment
Those economic factors which have their affects
on the working of the business is known as
Economic Environment.
 It includes system, policies and nature of an
economic trade cycles, economic resources Level
in income, distribution of income and wealth etc…..

8.  The economic environment represents the
economic conditions in the country where the
international organization operates.
 Economic environment refers to the aggregate
of the nature of economic system of the country
Business cycle the socio-economic infrastructure etc…

9.  Economic Environment is very dynamic
and complex in nature. It does not remain
the same. It keeps on changing from time
to time which the changes in an economy
like in Govt. policies, political situations etc……

10. Structure of Economy
In modern economic phases are somewhat differently
expressed by 4 degrees of activity.
Primary Stage
Secondary Stage
Tertiary Stage
Quaternary Stage

11. 1. Primary Stage
It involves the extraction and production
of raw materials such as corn, coal, wood
and iron.
2. SecondaryStage
It involves the transformation of row or
intermediate materials into goods.

12. 3. Tertiary Stage
It involves the provision of services to
consumers and businesses such as baby-sitting
cinema and banking.
4. Quaternary Stage
It involves the research and development
needed to products from natural resources
and their Subsequent by-products.

13. Note :
Education is sometimes include in quaternary stage
Various Environment Factors Such as ;
1. Economic
2. Socio-cultural
3. Political
4. Technological
5. Demographic
6. International
Affect the business and its
Working. out of These factors
economic environment is
the Most important factor.

14. Features Of Economic Environment
• Directly related with economic activities
• Impact of non economic factors
• Impact of basic infrastructure
• Impact of ideology of the people
• Availability of capital
• Economic disparities
• Economic planning
• Public morality
• Ideology of the Gotland economic system
• Directives of the Govt.

15. Components of Economic Environment
Income and Wealth : Income in an economy is measured
by GDP,GNP, and Per Capita Income. High values of
these factors shows a progressive economic environment.
Employment levels : High employment represents a positive
picture of the economy. However there are many forms
of unemployment including partial employment and
disguised unemployment.

16. Productivity : This is the output generated
from a given amount of inputs. High levels of
productivity supports the economic environment

17. Elements of Economic Environment
Economic Conditions
Economic Systems
Economic Policies
International/Global Environment
Economic Legislations
It has five main components

18. Classifications of the Economic Environment
Micro Economic : It includes the economic environment of
a particular industry firm or household and its primarily
concerned with price determination of individual factors .
The main consideration from a microeconomic perspective
is the efficient allocation of resources. This is necessary to
maximize total output.

20. Macro Economic : It includes all the economic factors
totality. The main consideration here is the determinations
of the level of income and employment in the economy.
Over the course of the 20th century the focus
has shifted from cities and countries to the
global economy being the chief economic unit

22. Factors Affecting the Economic
EnvironmentThe Economic Environment of a nation as well as the world
is impacted by ;
A. Inflation and Deflation
B. Interest Rates
C. Exchange Rates
D. Monetary and Fiscal policy

24. Interest Rates :
It determines the lost of borrowing and
the flow of money towards business.
Exchange Rates :
This impacts the price of imports the
profits made by exporters and investors and
employment levels.

25. Monetary and Fiscal policy :
This helps in attaining full employment
price stability and economic growth.
The economic environment is also influenced
by various political, social and technological
factors. These include a change in Govt. and the
development of the new technology and business
tools.

26. Objectives of Economic Environment
 Proper functioning of an economy
 Knowledge of new opportunities and resources
 Study of environmental factors
 Removal of obstacles and challenges
 Optimum use of environment
 Minimizing ill effects

27. Topic :
ECONOMIC
ENVIRONMENT
CONCLUSION

28. Thanks All
THE END