Economic factors concern the nature and direction of the economy in which a firm operates.Bcause consumption patterns are effected by the relative affluence of various market segments ,each firm must consider economic trends in the segments that affect its industry.On both the national and international level, managers must consider the general availability of credit, the level of disposable income, and the propensity of people to spend. Prime interest rates, inflation rates,and trends in the growth of the gross national product are other eonomic factors they should monitor.
Definition