Business Environment Unit IV

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Technological Change

• Technical knowledge used in the production of


capital / machinery.
• What the developed countries have and the
underdeveloped lack is modern science and
economy based on modern science and technology.
• Technology considered as the basic factor in the
process of economic development.
• Has both positive and negative impacts on the firms.
Demographic Advantage & Disadvantage

• Population Size
• Population Structure as per age
• Population Structure as per economy
• Ratio of educated people in population------
Human Resource Development
Population Size
Large number of population an advantage
 Active means of production
 Division of labor and specialization
 Use of natural resources
 More demand in economy:- wider market
Population Size………………..
Large number of population an disadvantage
 Employment generation pressure on government
 Peace and safety
 Supply of food grains
 Education facilities
 Health facilities
 Impact on natural resources
 Impact on ecology:----Forest-----Housing and infrastructure
 Pressure on Infrastructure----Road, Public Transport,
Electricity etc.
Human Resource Development
• Increase productivity of labor
• Research and innovation----- increase
productivity of capital------International
competitiveness increases
• More income-------more demand in economy
• More income------increased capital formation
• Skilled labor-------- more growth of secondary
and tertiary sectors
Culture
• Culture & globalisation
• Culture determines goods & services---eating
habit, dress code, equipment used.
• People attitude to business----In Islamic
Nations earning of interest earned on money
lent to others is considered haram.
• Attitude to work

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