Business Economics : An Important Effect On Business

This is a two sided argument which needs complex and in-depth analysis to make a final judgement. The degree of government intervention may depend on many factors affecting the economy as a whole, a specific market and the businesses operating within it. The nature of different government regulations may have a restrictive nature, however some government action may have a beneficial effect on business activity and positively impact their objectives. It is essential to look at this argument from the businesses perspective to determine the government impact on their performance.

Unemployment rate, one of the biggest macroeconomic indicators. Unemployment rate controls the rate of the economy, or GDP. If unemployment rate drops from 9.1% to under 5%, the entire economy would benefit. The job market would increase, total products produced would increase, and the overall standard of living would also increase. Employment is a key economic factor that affects all things economic.

The relevance of this book can be measured by its ability to speak to the everyday individual, who may or may not know anything about economics, and plant the seed toward global economic education. It provides a keen social awareness to people who may or may not ordinarily care about international economics and can have an eye-opening effect toward what really happens in the textile industry.

One of the core tenents to running a business is for a business to make money and to increase in size. As a result of that engaging in activities that increase a businesses capability to make money and increase its size is of great importance. Furthermore, as a result of that focus on increasing the sizes of businesses, globalization has furthered the spread of business. Globalization influences the world economically,

The rate of employment in a country is one of the major indicators of its economic strength. The higher the employment rate is, the lower the productivity of a country is supposed to be.

When we have a recession our GDP fall below our growth trend causing the economy to contract because of deflation. During a contraction we have higher unemployment because demand goes down and firms are producing less. The generally goal is to keep unemployed between a rate of four to five percent. The unemployment rate can be calculated by the number of the people unemployed divided by the size of the work force multiplied by one hundred. During the business cycle we don’t want our GDP to expand or contract to far away from the growth trend. The new growth theory of the 1970 has given economist a new way to look at the study of economic growth and made it a big topic in macroeconomic research. Economic growth tries to explain how fast a nation’s production and average standard of life expands from one decade to the next. It is measured in real GDP. The increase in real GDP means there has been an increase in the nation’s output and expansions. Economic growth is important in macroeconomic because it helps to create a better living standard and creates new jobs. When we have economic growth there is an increase in income and

The economic concepts that are present in this article include unemployment, more specifically, cyclical unemployment along with productivity and economic growth & activity.

1. The theory of consumer choice provides the foundation for understanding a. the structure of a firm. b. the profitability of a firm. c. a firm 's product demand. d. a firm 's product supply. ANS: C PTS: 1 DIF: 1 REF: 21-0 TOP: Consumer choice MSC: Definitional 2. The theory of consumer choice examines a. the determination of output in competitive markets. b. the tradeoffs inherent in decisions made by consumers. c. how consumers select inputs into manufacturing production processes. d. the determination of prices in competitive markets. ANS: B PTS: 1 DIF: 1 REF: 21-0 TOP: Consumer choice MSC: Definitional 3. Consider two goods, books and hamburgers. The slope of the consumer 's budget constraint is measured by the a. consumer 's income

Economic trends affecting business include depression (world-wide economic collapse), interest rates, inflation unemployment, consumer price index real GNP, personal income savings rate and capacity utilisation. Companies must choose those economic influences that are relevant to their business and monitor them. Not only the national economic factors should be considered but also the regional and global economic factors.

In your own words, summarize the article, “Gov’t moves to sell Medibank Private,” by Jim Mcllroy, April 9, 2014. In particular, what are the main messages of the article?

Unemployment rates ( July 2017@27.7%) impact the business both positively and negatively. Positively being that the business would be able to hire a workforce for less as there are many different people willing to work for minimum wage which is R3081 in this specific industry. Unemployment impacts the business negatively because when people are not employed they do not have a source of income meaning they will not have enough money to invest into the business as the small amount of funds they have would be used to provide their basic needs.

The second important macroeconomic indicator is represented by the levels of employment, and unemployment as well. The employment status of the individual consumer directly defines their spending powers and their disposable incomes. Specifically, people which are employed are better able to purchase the Nike products, whereas people who are unemployed possess a decreased disposable income and generate less sales for the company.

1. Business is one of the principal elements fueling the economy and the way that functions reflects on society as a whole. Businesses are responsible for the creation of a competitive market and it is only safe to say that they make it possible for a community to achieve economic progress. Individuals in a competitive environment feel pressured to act as effectively as possible and they are thus enabled to put across behavior that contributes to the wellbeing of the economy. Even with the fact that businesses are not exactly meant to cause a great deal of social benefits, they are nonetheless essential in keeping the economy alive.

From 2005 the liberalization textiles and clothing industry, the exports of this industry increased from 480 $ billion to 709 $ billion until 2012. (WTO.2005, 2013) The textiles and clothing industry accounts for a 4 per cent share in global merchandise exports. (The ILO, 2014) Garment industry has particularly characteristics, which selectivity and pertinence at production and market. (Adhikari, R. &Yamamoto, Y. 2007) Garment industry provides a lower investment cost and low skill labor in developed and developing countries. This industry has low barrier entry, so that clothing industry suitable for developing countries. But free trade and low barrier make it possible to adapt to rapidly changing market conditions. Therefore, the clothing industry characterize is high intensity of competition. This industry is the most protected in the global economy of all manufacturing industries, in both developed and developing countries. (Nordås, H. 2004)

Economics: The Economic way of thinking for a Manager & using firm value in Managerial Decision-making.