Environmental or external issues of managerial economics

Question

What are the Environmental or external issues of managerial economics?

Answer 1

It refers to the general business environment in which the organisation works. A study of economic environment should include:
i. The types of economic system in the country.
ii. The general trend in income, prices, production, employment, savings and investments
iii. Trends in the working of financial institutions for example banks, financial corporations and insurance companies.
iv. Magnitude and trends in foreign trade.
v. Trends in labour and capital market.
vi. Government economic policies like monitory policy, price policy and fiscal policy.