What do you mean by economic environment?

- Definition, Importance & Factors. The economic environment in which a business operates has a great influence upon it. In this lesson, you'll learn about the economic environment in business, including its various factors and importance. A short quiz follows. Supplemental Business: Study Aid / Business Courses.Oct 11, 2014 read more

The economic environment resulting from the 2007 financial crisis created a great deal of fear amongst companies thereby limiting their capital spending budgets. 20 people found this helpful Consumers are suffering in the current economic environment as high interest rates and low income are forcing homeowners to default on their mortgages. read more

You can divide the economic environment into the microeconomic environment, which affects business decision making - such as individual actions of firms and consumers - and the macroeconomic environment, which affects an entire economy and all of its participants. read more

The external environment can be broken down into two types: the micro environment and macro environment. The micro environment consists of the factors that directly impact the operation of a company. The macro environment consists of general factors that a business typically has no control over. read more