Understanding the External Environment

Front

What is the external environment in business?

Back

The external environment consists of factors outside of a business's control that impact its operations, decision making, and strategies.

Front

What does PESTLE stand for?

Back

Political, Economic, Social, Technological, Legal, Environmental / Ethical

Front

What is the political environment?

Back

The political environment includes government actions that impact strategic and functional decisions made by businesses.

Front

What support can governments provide to businesses?

Back

Governments can provide grants, training, and support for specific purposes such as relocation and financial management.

Front

What is a Trading Bloc?

Back

A Trading Bloc is an agreement between governments of a group of countries to trade freely, usually without trade barriers.

Front

What is the economic environment?

Back

The economic environment consists of key economic factors that influence the behavior of businesses and their customers.

Front

What is Fiscal Policy?

Back

Fiscal Policy manages economic growth by influencing demand and employment through government spending and taxation.

Front

What is Monetary Policy?

Back

Monetary Policy manages economic growth with stable prices and sustainable high employment, controlled by the Central Bank.

Front

What is Supply-Side Policy?

Back

Supply-Side Policy includes actions taken by the government to increase the productive capacity of the economy.

Front

What is inflation?

Back

Inflation is a general rise in prices or a fall in the value of money, indicating changes in the cost of living.