The economic factors can be further categorized into micro-economic and macro-economic factors. The micro-economic factors are related to how the consumers in the society spend their disposable income while the macro-economic factors are more concerned with the overall demand-and-supply conditions in the economy. The economic factors faced by an organization have a significant impact on how a business carries on its operations in the future. The exchange rates affect the organization by affecting the cost of imported and exported goods. Furthermore, the interest rates prevailing in the economy influence the cost of capital available to the organization and hence play an important role in the expansion and growth of the organization
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