Economics and the Business Environment is directed at students who will be taking up managerial positions in trade and industry or in government. The economic environment of European companies is central to the book giving students a good impression of recent developments within the European economy. The theories described enable students to: calculate how much competition firms within a particular business sector are exposed to analyze the current economic position of a particular country and make exchange rate prognoses gauge the effect of the economic environment on business sales and profits. Complicated analyses and mathematical models have been avoided as much as possible. Instead, diagrams and graphs illustrate the causal relationships between economic factors, making this book an ideal primer for those needing the basics of economics for their business degree.