Economic Environment

State VS Bitcoin

In many countries, the economic / financial environment is heavily influenced by the political environment in the context of government rules and regulations as to how businesses make money, as well as how businesses are taxed.

The Economic / Financial environment includes considerations such as the:

  • GDP Gross Domestic Product
  • the financial health of a region
  • are companies making profits able to hire a lot of workers, so employees have money and they can spend this money on consumer items
  • currency exchange rate
  • can the currency of the country be used to purchase required imports
  • currency convertability (relates to “economic sovereignty”)
  • rate of inflation / deflation
  • rate of minimum wage
  • ability of the government to finance infrastructure
  • fiscal policy (the government’s use of taxation)
  • monetary policy (the money supply)
  • national balance of payments
  • deficit / surplus
  • is the region attracting investment