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The schools and colleges assign students to prepare assignments on numerous topics as an integral part of academics. It is not always easy to make a blueprint of those assignments. 

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Meaning of Economic Environment

The economic environment cites all the economic components that influence the commercial arena and the behaviour of the consumer. The economic environment consists of all the external factors in the immediate marketplace and the broader economy. 

All these characteristics come together and influence a business, how it regulates and how profitable it might be and so on.


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The economic environment comprises various things for various people. For instance, for a farmer, the weather, the cost of seeds, the price of fertilisers and so on.

What are the Key Factors that Influence the Economic Environment?

The experienced Australian writers of BookMyEssay shed light on the topic through Recent Economic and Financial Environment assignment help. Two main factors influence the economic environment.

Microeconomic Factors

The microeconomic elements encompass the things that happens at an individual economy or consumer level. The microeconomic factors do not have the potential to affect the whole economy. The microeconomic factors that may impact a business are:-

  • Supply
  • Demand
  • Level of competition
  • Suppliers
  • The chain of distribution

Macroeconomic Factors

Macroeconomics is not confined to a single company, it has its impact on the entire economy of a nation and the economics of the international economical arena. The large scale economic factors that affect macroeconomics are:-

  • Inflation
  • The rate of unemployment
  • Interest rates
  • Gross Domestic Product (GDP)
  • The interest rates on savings
  • The Exchange rates
  • The level of consumer confidence
  • Discretionary income of consumers

The people in the domain of business cannot regulate the economic factors or the economic environment. They have the option to closely analyse the market situations before agreeing on whether to continue with a plan or step back and wait for the right time.


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What is Meant by Financial Environment?

A financial environment is an integral part of the economy. The main regulators of the financial environment are firms, investors, business organizations and the market. The financial environment embodies a portion of an adequately evolved economy or a particular individual who maintain their personal property and have the potential to expand their wealth.

What are the Main Components of the Financial Environment?

Recent Economic and Financial Environment assignment help gives comprehensive knowledge on the topic. The Financial Environment consists of four major components. They are –

  • Financial Managers: The financial managers are responsible for acquiring the funds for the business and investing those funds. The financial managers are accountable for maximising the value of the firm by boosting its stock price.
  • Financial Markets: A financial market is a place where funds flow between investors and borrowers. In the financial market investors and borrowers exchange financial securities, commodities at a price determined by demand and supply.
  • Investors: Investors may be individuals or organizations having an excess of funds and are inclined to provide funds to firms, governments, individuals or institutions.
  • Financial Instruments: Financial instruments infer tradable securities of the financial market. There are two types of financial instruments – a) cash instruments b) derivative instruments.

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