Why Is Economic Factors So Famous? | economic factors

Economic factors are the influential factors which affect the nature of the market environment in which a firm operates. These include the policies and decisions of government, central banks, industries and firms. Economic factors also refer to the conditions and changes in the economy that can affect the viability of a business.

Natural Economic Factors: Natural economic factors affect business through three main factors. They are climate, land and natural resources. All these are essential for any firm. It includes such aspects as soil and water; air temperature, humidity, wind, snow and sunlight.

Anthropological Economic Factors: anthropology is the study of economies of individuals and families. It includes production, consumption, economies of space, and time. Some of these factors are also used in economic factors affecting business research. The process of economic anthropology is carried out through ethnography, which refers to the study of cultural groups. This form of anthropological research involves the recording, mapping, and analyzing of human activities, practices, genetics, technology and institutions.

A sociological approach, the economic factors affecting business include such areas as the distribution of income and wealth, social class, political system, cultural norms, economic growth and development, geographic location, and other aspects. The scope of business anthropology is far wider than just the economic factors affecting business. It also encompasses other aspects like human resources, organizational structure and culture. All these areas are deeply involved in the process of running a firm. Understanding these aspects is fundamental to all firms.

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Marketing and Promotion Economic factors include factors which directly affect the marketing and promotion of a firm. These include factors such as demographic trends, market penetration, geographical area, advertising techniques, target market, business cycles, economic conditions, government policy, and competition in the market. All these factors contribute to the creation, development, and maintenance of a firm's market share. Marketing and promotion managers are involved in the process of deciding on the right marketing mix to attain desirable results. Promotion entails making available goods and services to potential customers.

Research and Development The research and development activities carried out in firms largely contribute towards the economic development of the society as a whole. This helps the firm to develop new products and services, which lead to an increase in the company's profitability. Many firms' research and develop new technologies for application in their operations. Research and development are crucial for a thriving economy.

PESTLE Analysis - Economic Factors - economic factors

PESTLE Analysis – Economic Factors – economic factors | economic factors

Economic Factors Stock Illustrations – 6 Economic Factors Stock - economic factors

Economic Factors Stock Illustrations – 6 Economic Factors Stock – economic factors | economic factors

PESTLE Analysis: Economic Factors Affecting Business - economic factors

PESTLE Analysis: Economic Factors Affecting Business – economic factors | economic factors

Factors affecting economic development - Economics Help - economic factors

Factors affecting economic development – Economics Help – economic factors | economic factors

Economic Factors Startup Must Consider Founder’s Guide – economic factors | economic factors

Economic Factors (Definition, Examples) Top Factors Affecting - economic factors

Economic Factors (Definition, Examples) Top Factors Affecting – economic factors | economic factors