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Dimensions of Business Environment ((1) Economic Environment ((ii)…
Dimensions of Business Environment
(1) Economic Environment
(ii) Economic Policies
mad
e b
y govern
men
t.its
orga
nises busin
ess
thro
ug
h Bu
dge
ts,Indu
strial
Reg
ulati
ons,Econ
om
ic Pl
an
ning
(i) Economic conditions
th
e
nat
ur
e of
th
e ec
ono
my,the
sta
ge of deve
lop
ment of the
eco
nomy,lev
el
of inc
om
e
(III) Economic System
Th
e
eco
nom
ic sys
tem
of co
untr
y m
ay be
en
terp
rise i.e. capi
tali
st,s
ocial
ist,m
ixe
d.
(2) Political and Government Environment
poli
tical
en
vir
o
nme
nt
inclu
des the country 's po
lit
ical sys
tem
and cent
ral
Govern
me
nt is ide
olo
gy.
Factors
(a)
I
nt
er
nati
onal rel
atio
nsh
ip
fol
lo
w
ed b
y go
vern
me
nt
.
(b)
Exp
ectat
ions of pe
op
le fro
m
th
e go
vernm
ent.
(c)
Th
e sy
ste
m fo
llow
ed fo
r elec
ti
ng t
h
e g
overnm
ent.
For examples
Du
rin
g the pe
riod
of 70s,there was
restri
ction o the e
ntry
of
MNC'
s bu
t in t
he chan
ged
sce
nar
io
wit
h
th
e ado
ptio
n of
LPG
p
oli
cy
G
rowt
h of
MNC's
ha
ve no
w be
en
encou
rage
d,
re-e
n
tra
n
ce of C
oca
Col
a
co
mpa
ny is the ins
tanc
e of ch
ange
d go
vern
ment po
li
cy.
3 .Legal Environment
T
he m
ain la
w
s that affe
ct th
e b
usin
ess incl
ude co
nsumer p
rotec
tion law,
an
titr
us
t law, enviro
*
nme
*
ntal law
and th
e l
aw that prot
ec
t the pu
blic inte
**res
t.
Factors
1.
co
un
try
ta
x code (may be diffe
re
n
t
in every coun
try ser
ved by bus
ines
s),
2.
exp
ort a
nd im
po
rt re
stri
ctio
ns
,
3.
tax restr
ictio
ns for par
ticula
r typ
es
of
busin
ess,
4.
ind
ivid
ual inc
ome
t
a
x, corp
ora
te inco
me t
ax,
5.
ov
era
ll t
ax a
nd fis
cal p
olic
y (ex
cis
e dut
ies),
4.Technological Environment**
" as a systematic application of scientific or other organised knowledge to practical tasks."
Factors
(1)
The total change in automobiles sector.
(2) Artifical
fibre has taken the place of cotton and silk.
3.
Better and improved methods of communication improve the quality of work