...Economic activities occur continuously. From buying groceries, experiencing massive layoffs, and decreasing taxes everyone is a part of the economic process. These things have an effect on government, business, and households. This analysis is a simplification of a complex process. Buying Groceries At first glance buying groceries is a simple task. One goes to the store and makes purchase; returns home and consumes the groceries. This activity involves more than a simple purchase. The government sets the tax rate the grocery is responsible for. The grocer collects that tax from the consumer at time of purchase and forwards it to the government. The government regulates the quality and standards of the product that the grocer purchases from suppliers. The government sets the tax rate the suppliers are responsible for. The suppliers collect these from the grocers and this is also forwarded to the government. In addition suppliers purchase equipment for use in production, people are employed to produce products, jobs are created transporting products. The purchase of equipment generates jobs in other industries. The purchase of raw materials to produce items generates jobs in additional industries. These businesses pay taxes to the government. Each individual employed pays taxes on his or her wages. In turn they consume groceries; keeping businesses supplying and producing, and generating jobs. One step in the process leads to the next step. It is a continuous process known...
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...Definitions Features of Business Post : Gaurav Akrani Date : 3/04/2011 10:56:00 PM IST No Comments Lables : Economics What is Business? Meaning Human beings are continuously engaged in some activity or other in order to satisfy their unlimited wants. Every day we come across the word 'business' or 'businessman' directly or indirectly. Business has become essential part of modern world. Image Credits © Mohddeeb. Business is an economic activity, which is related with continuous and regular production and distribution of goods and services for satisfying human wants. All of us need food, clothing and shelter. We also have many other household requirements to be satisfied in our daily lives. We met these requirements from the shopkeeper. The shopkeeper gets from wholesaler. The wholesaler gets from manufacturers. The shopkeeper, the wholesaler, the manufacturer are doing business and therefore they are called as Businessman. Definitions of Business Stephenson defines business as, "The regular production or purchase and sale of goods undertaken with an objective of earning profit and acquiring wealth through the satisfaction of human wants." According to Dicksee, "Business refers to a form of activity conducted with an objective of earning profits for the benefit of those on whose behalf the activity is conducted." Lewis Henry defines business as, "Human activity directed towards producing or acquiring wealth through buying and selling of goods." Thus, the term...
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...Running Head: Measuring Economic Activity Kim Adley ECO 201 – 1003A – 03 Macroeconomics Phase 2 Individual Project Measuring Economic Activity Professor M. Antokas July 26, 2010 Recently, a debate came about a debate as to whether or not I have a strong understanding of what Gross Domestic Product (GDP), unemployment, and inflation. The other part of the debate was whether or not these three issues should be discussed separately, or should GDP, unemployment, and inflation be discussed as if they were interconnected, have a relationship between one another. In my opinion, all three are related to each other, and so, should be discussed as if all three were related. One cannot discuss GDP, unemployment, and inflation, without discussing economic indicators. Economic indicators are those tools used as predictors of the health of the economy. There are three types of economic indicators: lagging, leading, and coincidental. Lagging indicators focuses on how the economy functioned in the past, leading indictors is used to predict how the economy may act in the future, and coincidental indicators looks at how the economy is performing in the present (Peavler, 2010). GDP is the measuring of all goods and services that are produced within the United States for a period of one year, equivalent to the sum of consumer spending, investment spending, and government spending, adding the worth of exports (Samuleson & Nordhaus, 2010). Some good examples to look at would be...
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...Germany’s economic activity regarding there national output and employment/unemployment rates. Being one of Europe's largest national economies Germany has had some recent trouble concerning their national output. Their GDP took a decline in the second quarter of 2014 and news came that “the government this week slashed its official growth forecasts from 1.8% to 1.2% for 2014, and from 2% to 1.3% for 2015” economist (2014). Being a manufacturing industrial giant with companies such as Volkswagen, Bosch, Nivea and numerous more the fact its exports dropped by 5.8% in august shows that this could have been partial reason to the GDP decline. Germany realise heavily on the export of the goods they produce within its country's borders so any decline in this will have a definite affect on the countries economy and as we can see this is what has happened here. The graph below shows Germany's recent forecast of exports which has plunged in the second half of 2014 to -5.8%. Another factor would be Germany’s adjustments on their fiscal policy “a sharp decline in capital investments contributed to a 0.2 percent contraction in the second quarter” Reuters (2014). With the country having a successful surplus in the first half of 2014 it would be expected for Germany to put more investment into the country's infrastructure to maximise growth and help benefit other European countries. Germany has not attempted this and other European countries are raising this issue that its affecting...
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...Global Economic Health Patrick Carroll Embry Riddle Aeronautical University Abstract The purpose of this paper is to demonstrate the predictive qualities of the Baltic Dry Index and how it can be used as an indicator of potential economic activity. That by watching an index that deals with the cost of transporting raw materials it will signal both an upcoming rise and decline in the GDP . The very nature of the BDI prevents it from being manipulated by governments or other outside entities and since the supply of ships to haul materials is for all purposes inelastic, it is a true indicator of economic activity as the index will rise with demand as well as decline when there is a surplus of ships available. What is the Baltic Dry Index? The Baltic Index has roots all the way back to 1744 where ship captains and merchants would meet to discuss business deals at the Virginia and Maryland Coffee House in London. It later changed its name to the Virginia and Baltick to represent a more accurate description of the trading routes frequented by its customers. (The Baltic Exchange) Eventually in 1823 it adopted a more formal atmosphere that required membership with strict requirements. Fast forward to 1985, this is the birth of the Baltic Index as it is known today. The index is essentially an average cost of what shipping companies charge to ship dry goods in bulk such as wheat, coal, ore, and so forth. It is compiled daily and is an excellent indicator of economic activity because...
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...Economic Context of Management Name: Pradeep Essay: “The Australian government has been running with too large a fiscal deficit during the past 4 years particularly in light of their projections for the Australian economy which were made when the first stimulus package was announced in 2008". Discuss this assertion and the consequences of this fiscal deficit on economic activity during the past 4 years. What are the implications of your analysis for Australia's fiscal policy during the next 3 years? EXECUTIVE SUMMARY Global Financial Crisis (GFC) evolved from its origin in subprime mortgage crisis of United States and affected almost every country in the world. Australia entered into GFC with a strong position, as compared to the other OECD countries. Australian government implemented stimulus packages in order to deal with the situation. This reports looks at the consequences of the fiscal deficit on economic activity and its implications for Australia’s fiscal policy. Its direct impact on Australia was small – mostly increases in bank borrowing costs The case for fiscal stimulus was based on Keynesian model, which proposes a short term government spending to stimulate the economy during the recessionary period. However, Basic Keynesian model assumes that the exchange rate is fixed. The analysis shows that significant contributor for GDP (expenditure) was net exports over that period, not the consumption. This increase in demand was due to the depreciated...
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...of two contrasting economic environments on business activities within a selected organisation Start the question by explaining that the UK economy is currently in a recession. Explain why you think the UK economy is in a recession by using the following indicators that are used to indicate recession; they include, GDP (Gross Domestic Product)- Very Low currently in the country, state how this will affect your business organization. Give at least three examples; it can be positive or negative. Unemployment: Identify the fact that the numbers of unemployed is very high in the country. Explain how this will affect your business organization. Give at least three examples of positive and another three for negative influence. Inflation: Talk about the inflation rate (Very high), explain how this will affect your business organization. Give at least three examples of positive and another three for negative influence. Interest rate base rate: Explain that the interest rate is very low, currently 0.5% in UK. Explain how this will affect your business organization. Give at least three examples of positive and another three for negative influence. House Prices: Currently very high to rent a house in the business district areas. Give examples of rent prices within your business location. How does the high rent affect cost? Give at least three examples of positive and another three for negative influence. Recession: All these negative impacts lead to economic recessions. You must...
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...M2 - Compare the challenges or selected business activities within selected organisation in two different economic environments In this task I will compare the challenges to selected business activities in two different economic environments. | Supply | Economic | Waitrose | Availability of raw materials and labour – Waitrose are impacted by this because the less raw materials there are, the harder it is for them to meet the demand on products. Waitrose will increase the supply of a product depending on the demand of this, and the demand on the product could also influence the price.Logistics to produce products profitably – Waitrose are impacted by this as they would have to run analysis checks on the supply chain (they would have to hire someone who is skilled in this department) they would have make sure they are producing products in the most cost effective way that is possible. Without their Competition for raw materials – Waitrose are impacted by this as they need raw materials for their business to strive, with developing countries having a bigger influence in the purchases of raw materials it is harder for Waitrose to get these materials at the price and rate that they want these products at. Waitrose have to take advantages of the periods in which raw materials is at a lowered price. | Stability – This impacts Waitrose as stability in the marketplace will allow them to forecast how well they think the business will do in the coming months, it will also allow them...
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...P5 Describe the influence of 2 contrasting economics environments on business activities within a selected organisation Introduction In this task I will be talking about two contrasting economic environments on business activities for Harris Academy Peckham and Peckham. The economic environments will be recession, demand and supply. Supply and demand is perhaps one of the most fundamental concepts of economics and it is the backbone of a market economy. Demand refers to how much of a product or service is desired by product or service is desired by buyers. The quantity demanded is the amount of a product people are willing to buy at a certain price; the relationship between price and how much of a good or service is supplied to the market is known as the supply relationship. Price, therefore, is a reflection of supply and demand. Harris Academy Peckham Demand and supply In this section for the task, I will be discussing the demand and supply for the school, in the most important element to talk about of the demand for and the supply of the school places and the parents that they need to send their kids to the school. It will be not uncommon for the parents who they live in Peckham to send their children to the school or different school that they aren’t in the area. There is a leading-on of the effect to the firing teaching because they were not enough students to come to the school, in this would cause extreme in the implication of the school which is the...
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...M2: Compare the challenges to selected business activities within a selected organisation, in two different economic environments Compare – what are the similarities and what are the differences Country: UK Economic variable | Effect on supply | Effect on demand | GDP (growth (low growth), recession) | The suppliers will start reducing their supplies to Toyota, which further decrease the GDP of the country. Toyota will also start producing fewer cars to be sold if less people are buying and upgrading their cars. | If less people have extra money to spend on goods, they’ll be looking after their car, which means all the cars that they’ve made are stuck on the production line, untouched and wasting away. | Inflation | Inflation prices in the UK are high compared to other countries i.e. china that produce and make things at cheap prices, if they prices go up for raw materials, Toyotas profit margin decreases or they can drive their prices up. | High inflation rates means demand will fall because as suppliers increase their prices, Toyota will want to have roughly the same profit margin, so their prices go up and with GDP at an all time low, less people will be buying their cars | Interest rates (cost of credit) | Companies borrow large sums of money if there looking to expand their operations, low interest rates could result in banks restricting the amount they give out and who they loan to, so if it’s a relatively small business, which might not be able to pay...
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...(M2) Compare the challenges to selected business activities within a selected organisation, in two different economic environments. It is very common in large businesses to expand abroad but there are a lot of factors to be considered when planning to start operation in a different country as countries differ depending on their background, policies, infrastructure and stability. In this report I will compare the challenges to business activities within Tesco Plc. In two different economic environments: China and UK. I have chosen China and UK as two contrasting countries and my chosen business is Tesco Plc., a large retail store in the UK. China is the 2nd most populated country in the world and is the largest economy in the wold in contrast UK has a significantly smaller population than China and is the second largest economy in the world. Chinese businesses have become much more efficient and China is now the largest Asian economy by a long way: meaning that if Tesco wanted to expand into China it would face a lot of competition and successful businesses with similar products. Tesco’s main most popular products are food and beverage where China is one of the world’s top producers of cereals: wheat, rice and sugar also meat, fruit, vegetables, tea and coffee which shows that in case where Tesco decides to start operating in China this could be considered as a challenge as locals would refuse to buy food from a retailer such as Tesco when they’ve got their own products. The...
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...Describe the influence of two contrasting economic environments on business activities within a selected organisation. M2: Compare the challenges to selected business activities within a selected organisation, in two different economic environments. This assignment is asking me to describe the influence of two contrasting economic environments on business activities within a selected organisation. Nike is a global brand specialising in the design and manufacture of athletic apparel, footwear, accessories and equipment; it is headquartered in the United States, Europe, and the Asia Pacific Region. Its products are available through over 20,000 retail outlets, including those in its own footfall outlets, e.g. Nike Factory stores. This study considers the contemporary business environment of Nike using a PESTLE approach, paying particular attention to any human resources management (HRM) issues that may arise under each heading. Overall, it is argued here that Nike has attempted to address various business and social challenges by harmonising its value proposition to ‘Consumers, shareholders, business partners, employees, and the community.’ There are many external environmental factors that can affect your business. It is common for managers to assess each of these factors closely. The aim is always to take better decisions for the firm’s progress. Some common factors are political, economic, social and technological (known as...
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...I consider myself to be an intelligent and sociable person, with very good team working skills and an inquisitive mind. These are three of my own strongest abilities: firstly, I have my own creative thinking and the curiosity for knowledge, specially for the subjects – Economics is my favorite. I also have a good English language foundation and self-management ability. This ability can help me to adapt to university as soon as possible, after this I have ability of team-work, I prefer to work as a group because I think the team-work has higher efficiency than working individual. At university I plan to study IT. This is the subject that I am most familiar with and I want to develop a career as a software engineer or game designer. I am passionate about this field, both the technical aspects and the application of technology to everyday tasks. This passion will drive me to work hard, and enjoy my work, in study and later in my career. There are two reasons why I want to choose IT course at university, at fist reason that since my earliest childhood I have always been interested in computers, the internet and various software. I thought these are the greatest invention around the word. Undeniably, IT already changed a lot for people’s daily life, making life more convenient and more amazing. I want to work in this industry to take these benefits even further and be a part of the information revolution. Secondly, I understand that the IT industry is related to other parts of knowledge...
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...10 Roles and Activities Executives Perform The topic that I chose to write on is the topic of the 10 roles and activities that most executives will have as they lead their companies. The 10 activities and roles that I will discuss fall into the categories. The Informational roles will include the executive being a leader, a liaison, and a figure head. The informational roles include the executive being a monitor, a disseminator, and a spokes person. The decisional roles will include the executive being an entrepreneur, a disturbance handler, a resource allocator and a negotiator. In this paper, I will explain these 10 roles and activities along with examples; I will explore the question as to do the current worlds executives still play a part in these roles and activities, and what factors might influence the executive as to whether or not they engage in these roles or activities. The first role of an executive is being a leader. This is still used and the top priority in my opinion. The company could not be a company without a leader. The executive has to be someone who is willing to motivate his managers and employees. He has to be the person who ot only leads his company, but a person who creates leaders within the company. The next role of an executive is a liaison to the public and to other companies as well. A well established company will need connections to work interdependently with the community and to have a good rapport with other businesses and the community...
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...systems; jobs are set up by managers and are geared to machines. Those who carry out work tasks are allowed little autonomy of action can cause worker dissatisfaction and high worker absenteeism, and common industrial conflict Work tends to be structuring. Work serves as a structuring element in people's psychological makeup and the cycle of their daily activities. Provides money (main resource people depends on to meet their needs). Activity Level (provides a basis for the acquisition and exercise of skills and capacities; offers a structured environment in which a person's energies may be absorbed. Variety (provides access to contexts that contrast with domestic surroundings) Structuring one's time (organizes the day and one's time around the rhythm of work; makes time more meaningful. provides a sense of structure in daily activities) Social contacts (provides friendships and opportunities to participate in charred activities with others) Personal Identity (work is usually valued for the sense of stable social identity it offers; self esteem, especially for men, is often bound up with their economic contribution they make to the maintenance of the household Describe phenomon “portfolio.” A professional person who works for many different companies or individuals. Someone who has skills and experience in a number of different areas.Going portfolio means exchanging full-time employment for independence. The portfolio is a collection of different bits and...
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