Which of the following factors are related to the economic environment?
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → Balance of Payments and Budgets
Economic environment includes all those factors that influence a country's economic system and business activities, such as Balance of Payments, national income, budgets, inflation rate, interest rate, and fiscal policies.
The other options relate to:
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Social environment → Life expectancy and workforce expectations.
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Political-legal environment → Legislations and government regulations.
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Technological environment → Technological developments and innovations.