The aim of this section is to provide an overview of the economic, political, legal and social framework within which Australian business enterprises have to function. How business functions and how effective the business sector is, will depend on the economic system and social structures of the country in which it operates.
Business enterprises are an integral part of a community.
They influence, among other things, the standard of living of the population and the types of jobs offered. In turn, the actions of the firms are influenced by the laws that governments make, and the structure of the society within which they operate. Everyone makes economic choices everyday when they decide what goods to buy, what services to use and what activities will fit into their schedules. Macroeconomics deals with bigger issues such as the overall operation of a country s economy and how to reduce the effects of economic cycles. All businesses are affected by periodic fluctuations in the general level of economic activity.