The global financial crisis (GFC) caused many businesses to reduce their employee numbers - HSC - SSCE Business Studies - Question 16 - 2012 - Paper 1

The global financial crisis (GFC) is primarily classified as an economic influence. The crisis led to widespread financial instability, which in turn affected businesses' ability to maintain their workforce. Companies often respond to economic downturns by implementing layoffs and reducing employee numbers to cut costs and survive financially. Therefore, the correct answer is (A) Economic.