Which of the following are examples of external trends?

• A. Fashion, economy, and spending habits
• B. Sales, past profits, and resource usage
• C. New feature, new version, and new product
• D. Borrowing money, buying assets, and stock

Answer: (A)

External trends are shifts in the outside environment that influence demand and strategy, not something the business controls. Fashion trends show what people want to buy over time, the overall economy affects how much customers can spend, and changes in spending habits reveal how people allocate their money. Together these macro-level factors help a business forecast demand, plan marketing, and adjust its offerings. That’s why fashion, the economy, and spending habits are the best example of external trends.

Internal measures like past sales, profits, and resource usage describe how the business has performed or uses its resources, which are internal factors. Product development items such as new features, versions, or products are company initiatives rather than external conditions. Financial actions like borrowing money, buying assets, and stock relate to internal financing and investment decisions rather than external environmental trends.