Question

All companies operate within the discourage the development of business. the arena of forces that encourage or

a. global sphere
b. economic policy area
c. technology window
d. external setting
e. business environment

Answer 1

The business environment encompasses all the external forces that influence the operation and growth of a business, including globalization, technological advancements, and government policies that regulate competition and market entry.

Step-by-step explanation:

Companies operate within a specific business environment, which is the arena of forces that both encourage and discourage the development of business. This environment is influenced by factors such as globalization, technological advancements, economic policies, and regulatory frameworks. The forces of globalization and new communications and information technology have drastically increased competition, as firms now compete with others from different regions and countries. Furthermore, the barriers to entry, which can be legal, technological, or market-based, play a crucial role in determining the ease with which new competitors can enter a market.

Government policies also form a significant part of the business environment. These include laws and regulations regarding contract enforcement, tax collection, health, and environmental protection. Policies such as antitrust laws, restrictive practices, and regulations on natural monopolies are all designed to promote competition and foster a healthy market economy.

Answer 2

The business environment, influenced by factors like globalization and information technology, affects the development of companies by either encouraging or discouraging competition and entry into the market. Laws and regulations also play a critical role in shaping this environment by directly affecting the level of competition and market entry barriers.

Step-by-step explanation:

All companies operate within a business environment that can either discourage or encourage the development of business. This environment includes the forces of globalization, advancements in communications, and information technology that have escalated the level of competition by broadening the pool of competitors from various regions and countries. Barriers to entry such as legal, technological, or market forces might discourage new firms from entering a market, affecting the level of business development.

Additionally, all market-based economies are influenced by a framework of laws and regulations, which includes the enforcement of contracts, tax collection, and health and environmental protection. Government policies, such as those preventing anticompetitive mergers, ending restrictive practices, imposing price cap regulation, and deregulation, aim to enhance competitiveness and promote business development. These laws and regulations can significantly shape the opportunities and constraints businesses face in the market.