Final answer:
The external environment of a business comprises global, economic, technological, sociocultural, and political forces, such as competition and the influence of social institutions, which shape how organizations operate and respond to changes.
Step-by-step explanation:
The wide ranging global, economic, technological, sociocultural, and political forces that affect the organization and its task environment make up the external environment of a business.
These forces include globalization, which increases the level of competition from various regions and countries, and the influence of social institutions such as the European Union (EU) and the Association of Southeast Asian Nations (ASEAN), along with technology, economics, cultural norms, and political systems. These elements combine to affect how organizations operate and can lead to significant changes in the workplace, requiring adaptation and response strategies from businesses to remain competitive and efficient.
A historical example that illustrates these interactions is the shift in North American agriculture from diverse cropping to monoculture, driven by technological advancements in machinery and the resulting changes in ecosystem such as soil infertility and erosion.