Types of Business Environment

Business environment may be classified as (a) Economic environment and (b) Non-economic environment.

Types of business environment

Types of Business Environment

Types of business environment

(a) Economic Environment

  • Economic Conditions

  • Economic Policies:

    • Industrial policy

    • Fiscal policy

    • Monetary policy

    • Foreign investment policy

    • Export –Import policy (Exim policy)

  • Economic System:

    • Capitalist economy

    • Socialist economy

    • Mixed economy

(b) Non-economic Environment

  • Social

  • Political

  • Legal

  • Technological

  • Demographic

  • Natural

Recent Development in Indian Economy

  • At the time of independence, to speed up the industrial growth and solve various economic problems,

  • The government took several steps like state ownership on certain categories of :

  • Industries

  • Economic planning

  • Reduced role of private sector, etc.

  • As a result, the government of India introduced a radical change in economic policies in 1991.

  • Government adopted several control measures on the functioning of private sector enterprises.

Developments under three heads, such as:

(a) Liberalisation: Refers to the process of eliminating unnecessary controls and restrictions on the smooth functioning of business enterprises.

(b) Privatisation: Refers to reducing the role of public sector by involving the private sectors in most activities.

(c) Globalisation: Integrating’ the economy of a country with the world economy.

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