Business environment refers to different forces or surroundings that affect business operations. This book dwells on how such forces comprising customers, competitors, suppliers, distributors, government activities, the economy, demographics, and social and cultural factors act and affect business environment. The book shows business environment in the light of three important aspects – Economic environment, Political environment and Social environment.It also explains the relationship of macroeconomic instability vis-a-vis capital flows and growth. The book is designed for the undergraduate and postgraduate students of Commerce and Management