Economic Factors | Definition | Top Factors Affecting Business


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this channel and today we have a topic with us which is in macroeconomic topic
what are economic factors that affects the economy at large because it’s macro
here we are going to study this topic in a much more detail format let’s get into
the nitty-gritty of this topic what are the economic factors when economic
factors are the factors that affects the economy
it includes the interest rates okay and tax rates policies wages and government
activity so these factors are not in direct relation with the business but it
influences the investment value in the future so what are the examples of the
economy factor we’ll try and incorporate few examples of economic factors well
the economic factors that affects the business as it is some of the some of
the other way connected to the business and it influences the drive of the
business like labour and the cost which it is always a controversial economic
factor that affects the economy now mean many countries have started their out
sourcing of the labor from the economy so interest rate is the major factor
that affects the liquidity of the cash in the now higher the higher return on
investment will attract investors management is playing a vital role in
the growth of the company though it is not economy factor it is factor which
affects by the economic side and it drives the business to general through
generate maximum of you okay what we’ll do is that
we will try and understand which are the top ten economic factors affecting
business first is interest rate when the interest rate the interest rate is
basically the major factor that affects the liquidity of the company or
basically the economy now with an increase in as an investment cash flow
okay in the country there’s a decrease and results in the decrease in the
liquidity of the country but as with a decrease investment cash flow in country
there’s increase and the increased ability of the country so higher the
return on investment will attract investor but if the interest rate on the
loan increases but if the interest rate on the loan if it goes up if the
interest of the loan increases the cash flow in the country basically it
increases the cash flow in the continued and decrease will result in the decrease
in the liquidity of the country whereas with the decrease in thee then then
there is a decrease in the interest rate or the loan over the loan capital in the
country increase and it results in the increase in the liquidity in the country
so the interest rate affects the economy second is the exchange rate that affects
now the exchange rate comes into picture in in case of the export and import okay
it comes into picture when exporting input comes into picture so it affects
the international payments the price of the goods that affects t economic
there is tax rates now the tax rate is basically crucial part of the economic
not the tax it affects the price of the goods and its sales affects the economy fourth is the inflation now with the
increase in the demand price of the goods or service increase which results
in inflation and the inflation money supply in the market fifth is the labor
that affects the country so basically labor and labor in its cost and wages
are always important economic factor that affects the economy many countries
have started outsourcing of labor from other country the company starts its
plant or production where labor is cheap sixth is the demand and the supply now
demand or supply of goods or service affects the economy as with the increase
in the demand and the price of the goods and services which increase the results
in inflation well the inflation money supply in the economy increases with the
increase in the supply of goods or services and the price of the same
degree so demand and supply depend on completely on each other the next is
wages no wages is paid to labor or employee which is direct cost of the
company which is added to the cost of goods sold through which it affects the
economy and another way through which wages affects the economy is with the
increase in the wages consuming the power of one increase and increase
consumer spending it the laws and the policies that affects now with changing
the modification 8th the law economy of the country change for example its
government makes a law with that of let’s say liquor changes or probably
liquor ban in the country it will affect the company dealing with it and their
employees in the shop cover which is broad level affects the economy
similarly any policies made by the government will affect the economic then
in 9. is the government activity now government activity also affects the
economy if the government is promoting any let’s say industry okay if the
comment is if the comment is promoting an industry like insurance medical
technology it will promote that sector and that boost its economy which will
overall support the economy 10th is the recession now recession affects the
purchasing power of the consumer which force companies to drop the prices to
drop the price of their goods and or basically you can see services now the
economic development is the development to raise the average standard of the
living in the country so each of the below given our economic factor
influence the growth of the country the following are some of the economics factor
that affects the development first is the education and training very
important now education is the most important tool in the development of the
country no education hence one to grow and develop which would result in
development at economy and the skill training helps one to develop self which
results in high wages and development of the economy second is the natural
resources now the natural resources available is like tree water soil oil
cold etc which affects the growth of the
country as if resources are available in the economy and one will not do pay for
its export and existing resources will help in creating the job creation and
that will increase in the wealth of the country which will increase the overall
economy third is the power and energy resources
now power and energy resources are the main reason okay they’re the main Rico
is required for functioning of the industry company or country so the
resources can be probably man-made like bio gas and natural resources like
patrol it includes a virtual coal gas so on and so forth these powers are
required for the development of the country and hence it will affect the
economy in developed it fourth is the transportation well our transportation
is having a crucial mode in the economic development as for the circulation of
one could services but means with the transportation is quite if a country’s
having good means of transportation we’ll be able to increase the reach of
the goods and service to consumer and this will results in the economic
development fifth is the communication now with the development of the science
and technology consumer dependent too much on the technology communication
helps in expansion of the company and it helps in the growth of the company so
these these companies are using modes of the communication like mobile internet
etc to promote their goods and services which leads to an increase in sales and
as a result economic development there are many other economic factors that
affects the or helps the economic development like technology labor force
capital etc so for the development of the country economic development is
required as unless and until the country has a strong economy it will not be able
to become a developed country so conclusion these factors affects the
marketing investment by studying in and analyzing it and it helps one to when to
invest and where to invest and when to take the money out of the particular
company so or probably from a particular sector as
changes in the economic factors will affect the return on investment so there
are various examples of the economic factor that affects the business and
economic development the investor needs to be prepared for any change in the
internal factors and consequences by knowing the impact on the economic large
okay and this factor also helps management and decision making and to be
prepared for any positive negative changes in the economy well that’s it
for this particular topic I thank everyone for joining the session if you
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