Page 85 - DMGT401Business Environment

Business Environment Harvinder Singh, Lovely Professional University

Notes Unit 3: Economic Environment of Business

CONTENTS
Objectives
Introduction

3.1 Economic Trends
3.2 Problems of Growth
3.3 National Income

3.4 Industrialization and Economic Development
3.5 Inflation
3.5.1 Types of Inflation
3.5.2 General Causes of Inflation in India
3.5.3 Measuring Inflation

3.5.4 Impact of Inflation
3.5.5 Measures to Control Inflation
3.6 Summary

3.7 Keywords
3.8 Self Assessment
3.9 Review Questions
3.10 Further Readings

Objectives

After studying this unit, you will be able to:

Discuss the economic trends
Identify problems of growth
State the role of national income in economy

Assess the role of industrialization in economic development
Discuss the concept of inflation

Introduction

Business is an economic activity that has and will continue to influence mankind the most.
Almost every citizen of the world obtains his/her bread and butter from some sort of business.
Either he is himself engaged in business or is earning because somebody else is engaged in
business. A deeper analysis reveals that the basis of international relations is also business.
The impact of business is so pervasive that besides judicial and administrative the third important
work any government has to perform is to regulate business in the national interest.

78 LOVELY PROFESSIONAL UNIVERSITY