difference between economic and non economic factors
These includes people’s attitude to work and wealth, ethical issues, role of family, marriage, religion and education and the social responsibilities of business. ‘Eco System’ is a complex and wider term denoting the relationship between living and non-living things as a whole in a particular region. Excessive use of fertilizers, chemicals and pesticides in cultivation. However, heterogeneity prevailing in respect of ethnicity, religion and language make the task of management quite complex. Geographical considerations influence and determine the number of business decisions. Social institutions like caste system, joint family system and laws of inheritance play an important role in economic development. Many of the western countries development is due to their abundant availability of natural resources. So the business firms are very much required to pay attention to the changing technological environment and to see as to how new technologies can serve best to the human needs. Stable political administration generates faith of the people in the programmes and policies of the government. Natural resources (those which are available as a free gift of nature) include land, water, minerals, fossil-fuel, forest products, wind and solar energy, etc. All non-economic issues related to business are included in non-economic environment of a country. There is little scope of mobility among the social classes in such a society. (ii) Political stability-impact of factors like civil war, the declaration of president’s rule and emergency, changes in the form and structure of governmental administration. Image Guidelines 5. During recession aggregate demand declines leading to fall in the demand for capital equipment. Even in recent times, different economies of Asia, viz., Indonesia, Thailand, Malaysia. But there are only a few people who can actually define and differentiate these two. In countries like Afghanistan, Yugoslavia, Pakistan etc., business activity had suffered considerably due to political instability prevailing in those countries. Non-economic damages, though no less significant, are more intangible and abstract. Maintenance of political stability is an important condition of business, development. Moreover, the maintenance of eco-friendly atmosphere is also quite important for the promotion of developmental activities in an economy. Privacy Policy It means making people (both the employees as well as the general public) aware about the causes and consequences of environmental pollution. Business decisions are always taken considering all these complex factors constituting economic environment of business. Economic development Economic change is a process in which agriculture, industry, trade, transport, irrigation, power resources etc. Business law is the complex system of regulation that forms the legal environment of business. It works, with the objective of profit maximization. Following are some of the important factors that affect the economic growth of a country: (a) Human Resource: Refers to one of the most important determinant of economic growth of a country. Banks and non-banking financial institutions are an important source of fund for the corporate sector. Technological environment consists of those factors related to knowledge applied and the materials and machines used in the production of goods and services t at have an impact on the business of an organisation. The level of development of the financial system is having a crucial importance in business. Those factors may be foreign policy, international treaties and foreign investment policy and various acts which are concerned with the dealings with other countries in trade matters. These damages are not as clear and easy to identify and place a dollar amount on for compensation. Any way the government concern over the economic power should spread all around the nation. The difference between economic development and social development Date Posted: 10/10/2011 12:14:14 AM. A social worker, on the other hand, serves a patient out of his zeal and its activity has no money value because he provides it without the aim of getting anything. With the charges in government and their policies, there will be change in international environment. Economic activities contribute to the flow of goods and services in an economy. It will create an environment to live. Disclaimer Before publishing your articles on this site, please read the following pages: 1. Higher rate of savings and investment can push the business activities towards higher destinations. Should I Contact An Attorney Regarding Economic and Non-Economic Damages? Cookie Policy Again, large labour force and rapid growth of labour supply affect the choice of techniques. The economic condition of a country, for example level of income, distribution of income and assets, economic resources, and stages of development are among the very important determinants of business strategies. Emission of gases and dust arising from atomic plants. Publication date: 18 November 2014. In countries, where investment and income are steadily and rapidly rising, business prospects are generally bright and further investments are encouraged. Bioclimatic resources (land, water, forests and climatic environment), Fossil Fuel and non-fuel mineral resources. Content Guidelines 2. Palm Beach County Personal Injury and Accident, Miami-Dade County DUI and Criminal Defense, Palm Beach County DUI and Criminal Defense, Appellate Court Upholds Florida Law Capping Medical Malpractice Awards. The quality and quantity of available human resource can directly affect the growth of an economy. (v) Trends of consumer savings and how consumer like to hold their savings, i.e., either in the form of bank account, investments in bonds and securities, purchase of real estate, insurance policies or any other assets. Disposal of solid waste of industries mines and quarries. Macro-economic scenario of a country determines the prospects of business to a large extent. Economic activities are performed regularly and for the major period of one’s life. In India, the social environment of a business consists of the class structure and mobility, social roles, nature of the social organisation and development of social institution. It means business should rectify whatever damage has been done to the environment. People now prefer to use mobile phones in place of landline phones. Both are “real” damages, but one is more easily seen or … Such ups and downs in business activity and stagflation has resulted a sense of insecurity in the minds of businessmen and thereby it disturbs the economic environment of business. Remember: If you can’t come to us – We will come to you. 1. However, some stringent provisions of FERA has been replaced by FEMA. 2. MRTP and FERA Act are restrictive in nature. Now business firms organise the associations to influence the policies of the government.

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