Availability of credit falls under the ________ forces category of external forces.

The availability of credit is closely related to the economic conditions and policies influencing financial markets. Economic forces encompass a wide range of factors, including interest rates, inflation, employment rates, and overall economic growth, which directly impact the availability of credit in an economy.

When analyzing the business environment, recognizing how economic forces shape financial opportunities is crucial. The availability of credit can evidently change based on shifts in these economic indicators. For example, during times of economic growth, lending is often more accessible, as financial institutions are more willing to extend credit. Conversely, in a contraction phase, banks may tighten lending standards, leading to reduced credit availability.

Thus, understanding credit availability as part of the economic forces helps organizations strategize their financial decisions and navigate the external environment effectively.