Economic Environment in Business Administration

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What does the economic environment of a country include?

Environmental sustainability, corporate social responsibility, ethical standards

Technological advancements, social media presence, consumer behavior

Level of employment, income rate, inflation, exchange rates (correct)

Political stability, legal framework, cultural values

How does the social environment affect businesses?

It helps businesses understand purchasing preferences of people. (correct)

It impacts the technological infrastructure of the country.

It determines the availability and cost of raw materials.

It directly influences government policies and regulations.

What is the study of people's statistics, such as age, gender, race, ethnicity, and location called?

Sociology

Demography (correct)

Epidemiology

Anthropology

Why should businesses research the conditions in the market before starting a new business?

To understand the economic and social factors affecting the business Signup and view all the answers

Which factor significantly affects the sales performance of a company?

Demand Signup and view all the answers

Why are social factors important for businesses?

Businesses are able to understand purchasing preferences of people. Signup and view all the answers

What is the primary purpose of technology environment for businesses?

To increase global business operations Signup and view all the answers

How does political/legal environment impact businesses?

It helps international companies decide on investments based on evaluating laws and regulations Signup and view all the answers

What are the effects of natural disasters on businesses?

Forced migration and disruption of the ecosystem Signup and view all the answers

What is a main characteristic of globalization according to the text?

Growing complexity with more people and ideas spreading quickly Signup and view all the answers

In what aspect does globalization impact businesses according to the text?

To meet and work with employees, employers, customers, suppliers from different countries Signup and view all the answers

What do global enterprises aim to achieve according to the text?

To build worldwide connections, interdependence, and complexity Signup and view all the answers

What are some key factors that influence the performance of companies according to the text?

Level of employment, income rate, and exchange rates Signup and view all the answers

Why is it important for businesses to understand demographic data according to the text?

To identify markets and determine workforce profiles Signup and view all the answers

How does the social environment influence businesses according to the text?

By understanding purchasing preferences and shopping power Signup and view all the answers

What aspect of the market conditions should businesses research before starting a new business according to the text?

Economic situation and demand Signup and view all the answers

How does the performance of companies depend on the economic situation of the country according to the text?

It impacts level of employment, income rate, and exchange rates Signup and view all the answers

How does technology environment impact businesses, according to the text?

It increases global business operations, productivity, effectiveness, and reduces costs by new technologies. Signup and view all the answers

What is the main impact of globalization on businesses, according to the text?

Increasing connections and interdependence in economies Signup and view all the answers

What are the characteristics of a global enterprise, based on the provided information?

Buying manufactured products overseas and working with employees from different countries Signup and view all the answers

Why is the political/legal environment crucial for businesses, according to the text?

To help international or multinational companies make investment decisions based on evaluating laws and regulations Signup and view all the answers

How do natural disasters affect businesses, as mentioned in the text?

By affecting businesses through hurricanes, volcanic eruptions, earthquakes, forced migration, etc. Signup and view all the answers