Economic environment:
Business is an economic activity that has
and will continue to influence mankind the most, Almost every citizen of the
world obtains his or her breads and butter some sort of business. Either he is
himself engaged in business or is earning because somebody else is engaged in
business. A deeper analysis reveals that
the basis of international relation is also business
Importance of economic environmental should
have judicial and administrative to work any government has to perform its to
regulate business in the national interest.
- · Capitalist court free enterprise economy
- · Socialist or central planned economy
- · Mixed economy
Capitalist economy:
The capitalist or free enterprise economic
is the oldest form of economy. Early economic supported the policy of ‘Laissez
fair’ meaning leave free, They advocated minimum government intervention in the
economic activity Activities.
Socialist economy:
In the socialist or centrally planned
economics all the productive resources are owned and controlled by the
government in the overall interest of the society. A central planning authority
takes the decisions.
Mixed economic:
A mixed economy combines the best features
of capitalism and socialism. Thus mixed economic has some elements of both free
enterprises or capitalist economy as well as a government controlled socialist
economy. The public and Private sector’s co-exist in mixed economy
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