EU

　　The effect of EU

　　· Product of standard

　　· Environmental protection

　　· Monetary policy

　　· Research and development

　　· Regional policy

　　· Labor cost

　　Market conditions

　　Markets can be affected by government policies

　　but demand will also be affected by：

　　(a)Business cycle

　　(b)Overseas demand and competition.

　　Political climate

　　Political parties will have different views on，and strategies about

　　(a)Balance of payments

　　(b)Gross domestic product

　　(c)Acceptable inflation rates

　　(d)Level of interest rates

　　(e)Fiscal policy(income tax，corporation tax and VAT)

　　(f)Government spending，incentives，tariffs.

　　Businesses that supply the government may suffer uncontrollable changes in demand if the political climate changes.

　　Legal factor

　　- Employment law

　　- Marketing and sales

　　- Environment

　　- Regulators

　　Funding

　　- Private sector organisations obtain finance from both debt and equity.Rational investors should invest in companies that will be able to provide an acceptable return on their investments.

　　- Public sector organisations have less control over the funding they obtain.Local councils may be capped over the amount of finance they can raise or the sources of finance can they obtain.

　　They may also have to provide free services to fulfill their social objectives.

　　Economic environment

　　- Gross domestic product

　　- Local economic trends

　　- Inflation

　　- Interest rates

　　- Exchange rates

　　- Government fiscal policy

　　- Government spending

　　- Business cycle

　　- International factor

　　What should a company consider when planning & assessing performance?

　　· Culture

　　· Economics

　　· Competitive forces

　　· Politics

　　· Technology

　　· Funding

　　· Legal factors