External Environment
This factor of the external environment includes international forces such as international law and currency fluctuations.
Global business environment
In this political system, the government owns and operates all factors of production.
Communism
The willingness and ability of buyers to purchase a product.
Demand
In this industry products are so similar they are viewed as identical by customers (example: wheat).
Perfect competition
This factor of the external environment involves the relationship between business and government.
Political-legal environment
In this political system, private ownership of factors of production is allowed profits are offered as an incentive.
Capitalism
The willingness and ability of producers to offer a good or service for sale.
Supply
In this industry there is only one producer who can set the prices of it's products.
Monopoly
This factor of the external environment includes customs, morals, values of a society.
Sociocultural environment
In this political system, the government owns and operates some factors of production and there is private ownership of some businesses.
Socialism
A situation in which quantity supplied exceeds quantity demanded.
Surplus
In this industry there are a few sellers with the power to influence prices. (example: airlines)
Oligopoly
This factor of the external environment includes new innovations that add value such as Zoom, online banking apps, AI, etc.
Technological environment
This economic system has features of both planned and market economies.
Mixed market economy
A situation in which quantity demanded exceeds quantity supplied.
Shortage
In this industry there are numerous buyers and sellers trying to differentiate their products from the competition. (example: Pepsi)
Monopolistic competition