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The Government encouraged foreign companies to invest in some sectors of retailing. The argument is:

(i) Customers can purchase the products of these companies as their income is rising.

(ii) It will increase innovations which will provide new ways of producing goods, this will ultimately improve the quality of life. Identify and explain the 'Business Environment' under four different dimensions quoting the Lines from the above description.

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(i) The Government encouraged foreign companies to invest in some sectors of retailing: Political environment consists political parties and their ideologies, stability of government, government policies towards business, etc. All these factors influence the stability, growth and profitability of the business.

(ii) Customers can purchase the products of these companies as their income is rising: Economic Environment refers to the nature of economy, economic policies of the government, economic institutions, economic indices, economic relations etc.

(iii) It will increase innovations: Innovation of what includes scientific research, innovation, development of new methods of production, distribution and marketing of goods & services, discovery and inventions of new markets.

(iv) This will ultimately improve the quality of Life: Social environment includes the social values, lifestyles, traditions, customers, ethics and values, composition of family, occupational distribution, standard of living etc.

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