Importance of economic environment: The economic environment refers to all external

factor that influence buying habit of consumer and business it will play in important role in
determining the success and failure of business.

Three condition Hampers- 1.sometimes it is difficult to identify which factor are there
show. where the economy is moving into fixed indicators cannot be identify .2.what you present
today for the identification economy that may not be working tomorrow .3.if one factors
depending upon another such as unemployment for poverty, poverty for income distribution.

GNI-gross national income-GNI is the total amount of money earned by a nation's people
and businesses. involved in national income, income of domestic land, income of people within
and outside the country .

GNP-GROSS NATIONAL PRODUCT- the value of all goods that we are producing in
our country in 1 year which also includes people of abroad working here but exclude our country
people working outside

GDP-GROSS DOMESTIC PRODUCTT- the value of all goods that we are producing in our
country in 1 year .its includes what we are exporting but excludes what we are importing.

Inflation –refers to the rise in the prices of most good and services of daily and common use
like as foods clothing etc .it occurs when prices rise due to increase in production cost such as
raw materials and wages

Deflation- opposite of inflation .it occurs when the inflation rate falls

Internal debt-borrowed by govt from various sources within the country .bank business firms
etc.

External debt-the debt that govt owed from the foreign countries .example ;japan gave as 15
million dollars as debt due to covid 19

if we take internal and external debt so have reflect countries economic situations.

Income distribution-how the income level is distributed among all the people of a particular .

Gini Coefficient-means income in equality somebody earn 1llakh taka and somebody earn 1
thousand tk. income in not distributed in an equal manner. so economic environment will be
impacted .

Urban by rural-urban area earning is high rural area earning is less .

Income Inequality- most of the people earning huge amount most of the people earning less.; so
economic environment will be impacted .
Poverty-less financial capability /sources .if I phone company wants to come start from
business but sees that people do not have that much of income .that’s why do not business in
Dhaka city .they chose where have people much of income level. so economic environment will
be impacted .

Labor cost-international company need to see which country provides lower level of cost
when thinking labor then they will try to entire there. labor is our country not well educated
trained developed .means we can sell our service in a very cheap rate .so the labor cos is also
create the economic problem.

Productivity: How efficient you are to use your input to produce batter out put .example U.S
technology can efficiently produce their product low cost and more batter output . so economic
environment will be impacted .

Economic System:
Market economy: i s an economic system that includes no government intervention and is
mainly driven by the law of supply and demand.▪

Command economy: the system is controlled by the government..

Mixed economy: is partly run by the government and partly

Ethics- Ethics is moral principle what is right or wrong

Business Ethics : to do business what is right or wrong to figure it out that is called business
ethics.

Ethical strategy: what process of action will be developing for employ.

Ethical Issues:

1.Employment practices: Balance of employee own people and local people .its do this
identify is negative ethics .

2.Human right-How they are looking at the people. who will be working .

3.Environmental regulation: environment should be taken into consideration at the time

of doing business protect environment.

4.,corruption-its should be controlled think about ethics.

5.moral obligations of multinational company :