Final answer:
Economic conditions can pose significant risks that businesses have little control over, impacting supply chains, competition, consumer spending, and capital availability. Globalization, new technology, and regulations further intensify these risks. The 2008-2009 Great Recession exemplifies how such risks can dramatically affect economies.
Step-by-step explanation:
Regional, national, and international economic conditions can significantly impact businesses, constituting an economic risk over which individual entities have very little control. These conditions include a range of occurrences, such as natural disasters, wars, unemployment, or economic slowdowns, which can disrupt supply chains, investment levels, labor force skills, and even consumer spending. The changes brought about because of these conditions can also lead to increased competition due to globalization and advancements in information technology, putting additional pressure on businesses. Furthermore, stringent regulations and licensing requirements can act as informal trade barriers, leading companies to eschew markets where meeting such standards is deemed overly burdensome.
Individuals, businesses, utility companies, schools, universities, and governments—pretty much anyone involved in economic activities—can be affected by these unpredictable conditions. The 2008-2009 Great Recession is a case in point, showing how a financial crisis can lead to a significant decline in the availability of loans, which in turn can cripple sectors that depend on borrowed money.