External Factors

Economic Obsolescence
Economic obsolescence in real estate refers to the loss of property value due to external factors outside the property itself. For instance, an expensive private home may lose value if an industrial plant is built nearby. This factor must be considered during the property's appraisal.
Macroenvironment
The macroenvironment encompasses the overall and broad conditions affecting societies and organizations globally, highlighting the interaction of national and international institutional forces.

Accounting Terms Lexicon

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