Final answer:
The external forces referred to as technological factors encompass the utilization of knowledge to innovate and develop new processes and products, affecting society and the economy in myriad ways.
Step-by-step explanation:
The external forces called technological factors capture the application of knowledge to create new process and products. These factors are fundamentally important because they directly influence various aspects of society and the economy. For instance, technological advancements have had significant impacts on medical procedures, allowing for breakthroughs in fertility treatments and increasing life expectancy. Similarly, in the agriculture sector, enhancements in technology have led to genetically modified foods, which have both health and environmental implications. In the business world, technological changes affect the kinds of capital firms import and can lead to shifts in global production, affecting trade balances as seen with the increased demand for high-tech capital equipment. It's also crucial to acknowledge that while technology brings progress, it also introduces new challenges, including issues of investment, market efficiency, government roles in research and development, and the management and conservation of common resources.