Ways in which the economic environment may positively influence the activities of a business

State ways in which the economic environment may positively influence the activities of a business

• The prices of commodities are low leading to increased demand
• Increase in consumers incomes hence high demand
• If the taxes levied on goods are low as it will make prices of commodities to fall
• If banks charge low interest rates on loans, it encourages people to borrow loans and buy more goods
• If there is low levels of inflation increasing or maintaining higher ability to buy