Economic Environment
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Economic Environment |
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Economic Conditions in the Market |
Economic Policies of Govt | Economic System of Country | ||
| Demand Factors | Supply Factors | |||
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| Levels of Income | Number of Suppliers | Industrial Policy | Free Market Economy | |
| Level of Savings | Extent of0 Competition | Fiscal Policy | Command Economy | |
| Levels of Spending | Nature of Supply | Monetary Policy | Mixed Economy | |
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Foreign trade Policy |
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Foreign Exchange Policy |
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Economic Systems
Every country has to address itself to some basic problems; they are
i) Which commodities should be produced?
ii) In which quantities they should be produced?
iii) How they should be distributed?
The countries are classified in to three groups on the grounds of the methods adopted by them for finding answers to these questions.
1) The Free Market Economies
2) Command Economies
3) Mixed Economies
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