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Economic factor that affect businesses: 1. Income 2. Inflation 3. Recession 4. Interest Rate 5. Exchange Rate There are four major elements that affect business environment. The elements are: 1. Economic growth 2. The business cycle 3. Employment and unemployment 4. Inflation

Read more: http://wiki.answers.com/Q/What_are_the_economic_factors_affecting_a_business_environmen t#ixzz1MfV8bzxI 1.Demographic factors like the population composition,size and location does affect the business environment. 2.Political interventions and environment one way or the other largely affects the business environment. 3.The Legal environment also affects the business environment. Read more: http://wiki.answers.com/Q/Factors_affecting_business_environment#ixzz1MfWrgh2I Economic factors that affect the business environments are as under:

y y y y y y y y y

Government economic policies rate of interest set by the centeral bank of any country Per capita Income which has a huge impact on business environment by changing their consumption behavior Privatization policy by the government instablity in the economy due to bad political conditions in the county affects the business environment Dumping Customs duty structure Airline air freight charges Foreign investment in the country

Read more: http://wiki.answers.com/Q/What_are_the_economic_factors_affecting_a_business_enviroment #ixzz1MfWyqc00

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