B) Human /Anthropogenic Environment

a) Social Environment: The population is unevenly distributed on the earth’s surface. The size of population affects the flow of world commerce. Densely populated countries of Asia demand large quantity of food grains as their domestic production is inadequate to feed their population. On the other hand, countries like Canada and USA have moderate population so they have surplus food grains.

b) Political Environment: The political conditions prevailing in a country directly affects the flow of commerce of that country. The countries of the world follow different political systems such as Democratic, Communists, Dictatorial etc. The countries following the same political system form a trading block to regulate their trade and get more benefits by reducing unhealthy competition.

c) Economic Environment: Economic environment consists of all the components which make the development possible in a country. It consists of economic policies, trade policy, economic planning models, economic systems etc.