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What are the external forces in a business environment?
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- Social factors. For example, moral values affect the market for various products, making them popular in one country but not another.
- Legal. The level of government regulation impacts businesses.
- Economic. A business might be inversely affected (through no fault of its own) by a recession.
- Political. There can be political risk, for example, in trying to invest in a country with an unstable government. The government might, for example, fall and be replaced by one that is interested in nationalizing your investment.
- Technological. A change in technology can seriously affect a business. For example, companies that made film for cameras have had to adapt to a world where that is an obsolete product.
Competition is the major external force in the business environment. However, there are many others not listed in the previous answer. The other external forces include:
Posted by pohnpei397 on September 14, 2012 at 1:40 PM (Answer #1)
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