The Interaction Economy Introduction Throughout history, successive economic eras have evolved as new social and scientific forces stimulated new ways of doing business which, in turn, require new competencies. The era now rapidly emerging and its new ways of doing business demand new kinds of skills in an ancient arena: Generally, the history of human economics is considered to have gone through several phases, each one shorter than those that preceded it.
Economic and Non-Economic Environment: The economic environment is, thus, both exogenous and endogenous. Let us consider a few specific 'interactions'. The social Attitude towards business and management determines how nanny people get attracted to private business as an'activity and to management as a career.
If business gets a social sanction as a respectable profession, the occupational structure of a country will reflect a sizable category of professional enlargers.
Let us take another example. Social movements largely determine the economic system.
If the workers cultivate an attitude of confrontation rather than co-operation with management, a repressive economic system may be needed to cope with industrial disorder. On the other hand, if the attainment of rapid economic growth is the target, the management must bring about a labour-productivity revolution and for that, payment may be based on the productivity of labour rather than the profitability of business.
To operate on productivity-based wages is to operate on the system of incentives and positive attitudes of the labour. The attainment of a specific economic objective is thus, conditioned by a specific social attitude and discipline.
For example, only a relatively high-income country can afford to import costly higher education in science and technology. The system of education, on the other hand, may be responsible for a given economic environment.
For example, the emphasis on education in the 'arts' and a lack of vocational courses may be held responsible for the economic problem of unemployment in many countries.
At the corporate level, the inter-dependence between educational and economic environmental factors may at times take the form of a vicious circle. For example, a low-profit business concern may not find resources to finance management training or executive development programme.
As a result, there may be a shortage of highly qualified and trained management personnel. Thus, lack of trained competent managers may lead to business inefficiency.
The politico-legal environment and economic environment of Bulfinch. But if there is political instability, business uncertainties multiply and, therefore, individuals may not like to take up new business ventures.
The state of business in Punjab is a recent example. The ruling party which believes in using socialism as a strategy and nationalization of enterprises as a tactic to strengthen the economy, may be detrimental to the interests of the private business sector.
It nay kill its business incentives to expand its range of operations. On the other hand, sometimes a series of political legislation's may be necessary to cope with the economic environment. The present economic environment of business can be treated as a legacy of its past historical environment.
Every business has a history, a history always has a lesson to teach. As such, the present is a reflection of the past, and the present can also be handled in terms of the experiences of the past.
A Nuremberg of examples may be quoted. The economic environment of a country today is partly determined by the available structure of industry m that country. Today you find a number of extraction industries such as mines and plantations in our country.
These industries can be traced back to the colonial pattern of investment in the past.Business firm is micro economic unit Business environment furnishes macro economic context for its operation Environment in which business operates Includes conditions, events, factors that influence the working of business DOMESTIC MACRO NON ECONOMIC ENVIRONMENT INTERACTION MATRIX Studies interaction, interdependence, interlocking of /5(13).
Economic factors are all the units required in the economic activity of production of goods and services with the effective and efficient utility of . The PEST analysis is a framework that strategy consultants use to scan the external macro-environment in which a firm operates.
PEST is an acronym for the following factors: PEST is an acronym for the following factors. ECONOMIC AND NON-ECONOMIC ENVIRONMENT: THE INTERACTION MATRIX The economic environment of business exercise a strong influence on the non-economic environment of business just as the non-economic environment influences the .
The Interaction Matrix For Economic And Non Economic Environment Impact on business changes in the economic environment Introduction- In this report I will describe and then explain how the GDP, inflation, interest rates and employment rates are affected by the growth and recession stage of .
Economy-Environment Interactions by Lachlan Huggins The Topic Despite the strong linkages between the economy and the environment, human activity continues to destroy the environment thus jeopardizing future economic activity.