Introduction to Business Environment

INTRODUCTION TO
BUSINESS
ENVIRONMENT

1. INTRODUCTION
• Business environment is the combination of
internal and external factors that influence the
organisation's operating situation.
• It is the most rapid and dynamic factor that
affect the entire cycles of business.
• The changes in business environment for all
companies is under drastic changes that is
caused by various forces that includes
globalisation, technological development and
corporate social responsibilities.

2. ROLE OF FISCAL POLICY
• Fiscal policy is an economic policy by which
government of nation adjust its level of
spending to supervisor and influence the
economy of country.
• For example, increasing government spending
and tax cuts. In order to manipulate rate of
taxes, interest as well as spending of
government is influenced by the fiscal policy
and this policy is used government of United
Kingdom

SOME ROLES PLAYED BY FISCAL
POLICY IN ECONOMIC
DEVELOPMENT OF UK
Contractionary fiscal
policy- It is the type of policy
that involves increasing of
taxes, decreasing government
expenditure or both to fight
the pressure of inflation. Due
to increasing taxes, household
have less income of disposal
to spend that resulted in
decreasing consumption