Economic factors in decision making fall under the category of "External Factors"
Explanation:
Economic factors in decision making fall under the category of "external factors".
The economic factors refers to factors that help to determine the competitiveness of a firm in the surrounding environment. Despite of the fact that these factors relate with the economy on a more prominent scale, the basically affect the internal working of an organization.
Examples of Economic factors include Government policies,law,tax rates,unemployment,Wages,interest rate.
Economic factors refers to the external factors in decision making process .
While internal factors could be personality type, previous experiences or emotional or mental state at the time of making a decision, external factors are the factors that are external to an individual.These include economic factors surrounding an individual or a firm
Explanation:
External factors can affect a firm's or investment's ability to achieve its strategic goals and objectives. Such external factors may include competition; social, legal and technological changes, and the economic and political environment.
Outside innovations are always the X-factor which will bring surprises to our economic future predictions. Such recent changes may be due to influences of (1) nature; (2) geopolitics; and (3) economic or social trends. Economists also speak of such causes as being "exogenous."
