Identify and Describe the Three Major Parts of the External

question 101

Essay

Identify and describe the three major parts of the external environment.What is the purpose for a firm to collect information about these aspects of its environment?

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Definitions:

Balance Of Payments

A record of all transactions made between one particular country and all other countries during a specified period, showing the total inflows and outflows of money.

Net Investment Income

The profit gained from investments after subtracting related expenses such as interest, taxes, and fees, indicating the actual earnings from investment activities.

Net Unilateral Transfers

Financial transfers made by a country without expecting or receiving anything in return, often in the form of aid or remittances.

Balance On Capital Account

A measurement of the financial transactions that cause a change in the ownership of assets between residents and non-residents.