Match List - I with List - II.

Choose the correct answer from the options given below:

(A)-(II), (B)-(IV), (C)-(I), (D)-(III)

The correct answer is Option (1) → (A)-(II), (B)-(IV), (C)-(I), (D)-(III).

(A) Economic Environment- (II) Rate of Saving and Investment.

The economic environment refers to the conditions and factors that affect the functioning of businesses and organizations within an economy. It encompasses various aspects related to the economic system,  Some Components of Economic Environment are as follows-
* Existing structure of the economy in terms of relative role of private and public sectors.
* The rates of growth of GNP and per capita income at current and constant prices.
* Rates of saving and investment
* Volume of imports and exports of different items.
* Balance of payments and changes in foreign exchange reserves.
* Agricultural and industrial production trends.
* Expansion of transportation and communication facilities.
* Money supply in the economy.
* Public debt (internal and external).
* Planned outlay in private and public sector.

(B) Social Environment- (IV) Birth rate and death rate.
The social environment of business include the social forces like customs and traditions, values, social trends, society’s expectations from business, etc. Traditions define social practices that have lasted for decades or even centuries. Major Elements of Social Environment-
* Attitudes towards product innovations, lifestyles, occupational distribution and consumer preferences
* Concern with quality of life
* Life expectancy
* Expectations from the workforce
* Shifts in the presence of women in the workforce
* Birth and death rates
* Population shifts
* Educational system and literacy rates
* Consumption habits
* Composition of family

(C) Technological Environment- (I) New methods of production.
Technological environment includes forces relating to scientific improvements and innovations which provide new ways of producing goods and services and new methods and techniques of operating a business. For example, recent technological, advances in computers and electronics have modified the ways in which companies advertise their products. It is common now to see computerised information kiosks, and World Wide Web multimedia pages highlighting the virtues of products.

(D) Political Environment- (III) Peace in the country.
Political environment includes political conditions such as general stability and peace in the country and specific attitudes that elected government representatives hold towards business. The significance of political conditions in business success lies in the predictability of business activities under stable political conditions. On the other hand, there may be uncertainty of business activities due to political unrest and threats to law and order.