The macro and micro economic forces which affect the global environment are as following. 1.

Population- This is the first factor which plays a vital role in the global environment. The consumption pattern of any country is based on the population of the country. With the data of population companies targets their market, population helps in segmentation of the market. Mainly developing and underdeveloped countries have the great number of population, which are the huge market to target, and it is still not saturated. The main factors of the population are given below.

a. Male- female ratio b. Average age of the citizen c. Life expectancy of the citizen d. Percentage of literacy e. Percentage of poverty The data of population can provide the data of these factors. By analyzing these factors you can take important business decisions.

2. Gross domestic product (GDP) - gross domestic product of any country represents the aggregate output of the economy as a whole. It helps to measure the growth of the economy. Various sectors of the economy contribute in calculation of the gross domestic product. To calculate the gross domestic product of the world, we combined the GDP of the all countries of the world.

3. Inflation- continuous hike in a price of a commodity is called inflation. A little inflation is the sign of a healthy economy. It is the factor which directly affects the economy. There are mainly two types of inflation that are given below.

a. WPI (wholesale price index) - it consists of a basket which consists of around 400 commodities in which most of the commodities are related to agriculture. b. CPI (consumer price index) - consumer price index is the measurement of the inflation which is based on the price of goods and service that consumer pays. The US economy uses CPI parameter to measure its inflation.

4. Per capita income- it is often used as measure of the total wealth of a population of a nation. It is does not signifies the distribution of wealth. Figures of the per capita income help the companies to understand the business opportunities in the country. 5. Interest rates- to maintain liquidity in the economy interest rates plays a vital role. The central bank of the country regulates the interest rates. It is the factor which also affects the inflation of the economy. When there is excess of liquidity in the economy, the central bank increase the interest rates, and to increase the supply of liquidity, central bank decreases the rates.

6. Employment rate- employment rate is the rate which helps to understand the wealth of the country. There is no fixed parameter to calculate the employment rate. Employment rate helps to understand the consumption pattern of the country. Like the growth of the company employment rate is also changes every time.

Impact of economic forces on India after liberalization- 1991 was one of the toughest years for India. We were having double digit inflation, our prime minister was assassinated by LTTE and we were on the verge of loan defaulters. Our foreign reserves were nearly emptied. at that time with help of finance minister Mr. Manmohan singh, Prime minister overnight changed the economic, financial and foreign policies.

Before liberalization all the businesses were run by government and private sector were highly regulated. But after liberalization Indian economy transformed. With its great number of population, this at the time of 70s was considered as the burden, but after liberalization considered as demographic dividend. With the great number of educated youth, India became hub of IT companies. Its population attracted the tremendous foreign investment. In the last three years Indian economy registered a growth of average 8 percent, just because of its soaring service industries. Although inflation is the factor which is persistently bothering the government, but a little inflation is a sign of a healthy economy.

The latest unemployment rate of India is 10.7% as per the figure we got from internet. Low employment rate represents the prosperity of the country up to some extent, but in case of India, it also includes the people who are below poverty line, who earn less than 20 rs in a day. With the liberalization the employment opportunities in India increased drastically, for skilled as well as the unskilled people. But liberalization created a huge income gap between the classes of the society, means rich are getting richer, and the condition of the poor gets worsen.

As far as per capita income is concerned the latest figure is 46,492 rs. There are predications that this figure would reach to 10,000$ by 2039. This implies that the people are getting richer with the time. But it is not necessary; the rising income gap between the rich and the poor could be the probable reason behind this rise in per capita income.