Explain using 3 examples how external factors influence business

Fators are 1. Economic Conditions, 2. Alternate or Subsititues, 3. Infrastructure

Explanation:

As the examples are below:

1. If the economic conditions are favorable such as stable no political instability as it will give confidence to the business owners to further operate.

2. It also depends on the market, as it there are more substitute's available which means the margin is less therefore less profitability as in this owners might think that less attractive, whereas in opposite if the market is monoply that means less competition and more profit the owners might be charging more due to less availability of alternates.

3. As it also depends on the infrastructure as which means how easy is it for the products to reach the market. If the infrastructure is not developed than how can a company operate and able to distribute the products in the market.