восток_в_тени_ресниц все записи автора The economy comprises millions of people as well as the government and local authorities, also decisions about prices and wages, what to buy, sell, produce, export, import and many other matters. All these organizations and the decisions play a prominent part in shaping the business environment.
The economy is difficult to control and predict, but it is certainly important to all businesses. You know that there are times when businesses and individuals have plenty of funds to spend and there are times when they have to cut back on their spending.
When the economy is enjoying a boom, firms have high sales and prosperity. Unemployment is low. Consumers have plenty of money to spend. It follows that the state of the economy is a major factor in the success of firms.
During periods when people have less to spend many firms face hard times as their sales fall. Thus, the economic environment alters as the economy moves into a recession. Income falls and unemployment rises. Consumers purchase cheaper items and cut. Changes in the state of the economy affect all types of business. In the recession of the early 1990s the high street banks suffered badly. This was because fewer people borrowed money from banks, and they didn’t have opportunity to earn interest on loans. No individual firm has the ability to control this aspect of its environment. Rather, it is the outcome of the actions of all the groups who make up society. Besides it is influenced by the actions of foreigners with whom the nation has dealings.