Max Business

Economic business environment is the most important dimension of business environment. The important factors of economic factors which have impact on business. The business policies of a developed country are different form the policies of developing countries. There are mainly three economic structures Capitalist, socialist and mixed economic structure. In capitalist state businessman takes decisions by giving priority to profit motive. In socialist state government give in priority to welfare of people and in mixed economy, India business policies are taken by considering both, profit and welfare of people. In mixed economy there is co-existence of public and private sectors. Important economic policies which influence business decisions are industrial policy, monetary policy. Liberal policies offer more opportunities to businessmen whereas strict policies put constraints. It includes five years plan, Annual budgets, and Growth plan. These plans also influence business decisions. The common economic indicators are national income, per capital income, rate of saving and investment, balance of payment, value of export import, GDP, GNP. It refers to basic service or setup necessary to carry on activities in a country, Transportation, communication, banking, financial institution.