Introduction organizations and economic environment that both 
influences and is influenced by their activities. This 
environment consists of dynamic, interactive, and 
constantly changing variables, some of which are 
shaped by government actions as it fulfills its various 
roles in the economy.
The economic environment is a crucial 
aspect of the external business 
environment that influences how 
businesses operate and make decisions
The economic environment refers to all 
the external economic factors that 
influence the operations and 
performance of a business