The economic business environment has been marked with both lows and highs in the past 20 years. There have been periods of economic recession and seasons where there is boom within the business field as a result of strong economic indicators. There have been years where the economy picks and those of economic decline. The economic business environment had strong growth as a result of the high rate of globalization brought about by the emergence of the internet generation. This strong economic growth was seen during the early 21 st century. The economic growth rose significantly until 2007 when the world was caught up in a major global financial crisis. This global financial crisis affected virtually all sector of the economy. It is the time when the business community recorded massive losses and poor performance in their accounts. The global financial crisis continued until 2012 and left some countries like Egypt and Venezuela in deep economic recession from which they have never recovered up to now (Laeven & Fabián, 2013).
The economic business environment is strongly affected by other environments, particularly the political and legal ones. Developments within the political business environment have very huge impacts on the economy of the given region (Peltoniemi & Vuori, 2004). For instance, the BREXIT political development will have huge economic impacts when fully implemented. Policies made by the governments of the world shape the economic business environment.
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Currently, the economic business environment appears to be stable. There are economic reforms being implemented in various parts of the world, which are causing benefits to the economic business environment. For instance, a lot of regions are entering agreements meant to open up national borders for free trade. A lot of nations are also implementing attractive economic policies in order to attract foreign direct investments. The future of the economic business environment looks bright as investments increase.
References
Laeven, L. & Fabián, V. (2013). “ Systemic banking crises database .” IMF Economic Review , Vol. 61, No. 2, pp. 225–70.
Peltoniemi, M., & Vuori, E. (2004, September). Business ecosystem as the new approach to complex adaptive business environments. In Proceedings of e-business research forum (Vol. 18, pp. 267-281).
