The current state of a country’s economy affects virtually every organization doing business there. In general, in a growing economy,more people are working and wages are growing,and therefore consumers have relative more money to spend. More products are bought and sold in a growing economy than in a static or or shrinking economy. Though an individual firm’s sales will not necessarily increase, a growing economy does provide an environment favorable for business growth. In contrast,in a shrinking economy,consumers have less money to spend and relatively fewer products are bought and sold. Thus, a shrinking economy makes growth for businesses more difficult.