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Economic forces are the factors that help to determine the competitiveness of the environment in which the firm operates.〔(Economic forces ), Business Dictionary〕 These factors include:〔(Economic Forces ), Investor Words〕 # Unemployment level # Inflation rate # Fiscal policies # Government changes These factors determine an enterprise’s volume of demand for its product and affect its marketing strategies and activities. The economic system is made up of three main steps. The first one being production and then there is distribution of the produced goods and then the last step is consumption of the same. Now all this is possible because of two factors- Human resource and Natural resource.〔(Economic Forces ), Connexions〕 Natural resources include the raw material which is generally used in the production process, and human resources help to convert the raw materials to finished products which are then ready for distribution. ==External costs== When an economic activity is carried out, it mostly affects the environment and the effect is adverse. This is the case of a firm which pollutes the environment. The society considers the cost of cleaning up of the environment as a relevant cost but the firm doesn’t. But when the negative effects of pollution and the cost of treatment are added, the total cost most of the times adds up to be more than the production cost. And when this cost is added to the production cost, the overall price becomes higher and leads to a fall in demand of the product. With this again the pollution level is reduced. Taking another example where a firm pollutes and throws its waste in a private pond. The owner of the pond may charge the firm the polluting cost and the firm has to pay. But if the same firm dumps its waste in a river, it does not have to pay anything as the river is a public good. But the dumping of the waste in the river causes many environmental problems. It damages the aquatic life, may lead to a lower water standard and health problems. Hence to reduce the pollution emissions from these firms in water and air, a pollution tax can be charged from these firms which can be indexed (in slabs) in accordance of the pollution level done by the firms. 抄文引用元・出典: フリー百科事典『 ウィキペディア(Wikipedia)』 ■ウィキペディアで「Economic forces」の詳細全文を読む スポンサード リンク
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