The Business Environment
James D Perkins
Dr. Marcus Crawford
Business 100
January 27, 2012

Abstract
Businesses are the main provider of jobs in a capitalist economy and the primary reason for economic growth. The definition of business is any activity that provides good and services in an effort to earn a profit. Businesses in the economy drive up the standard of living and overall quality of life for humans. These businesses produce the products we enjoy and in turn create jobs people need. The major difference between profit and nonprofit businesses is the main goal of profit organizations is to generate a profit for the owners and nonprofit is to use their surplus of funds to advance the goals of the organization. Fiscal policy and monetary policy refer to the efforts to shape the health of the economy. Direct investment and foreign outsourcing are the two key components in deciding which direction to expand a business global. U.S. based company Apple boosts huge profits, but has lost touch with the social obligation it has to Americans by sending all jobs overseas.

Businesses are the main provider of jobs in a capitalist economy and the primary reason for economic growth. The definition of business is “any activity that provides good and services in an effort to earn a profit” (Kelly 2012). Most everything in the world related to economy is business. Agriculture, manufacturing, retail, health care, and even our government is business related.
Let’s look at business on a small scale. In an agricultural society based just on farming, each farmer would specialize in one product otherwise everyone would have to grow their own food, manufacture their own clothing, and raise their own livestock. Being specialized in one area would create the need for bartering. Each farmer would trade their surplus for other goods with other farmers. On a large scale, businesses in the economy drive up the standard of living and overall quality of life for humans. These businesses produce the products we enjoy and in turn create jobs people need. Businesses big and small pay taxes to our government that allows the government to function across the country. Thus business is a critical part of our economy. The major difference between profit and nonprofit businesses is the main goal of profit organizations is to generate a profit for the owners and nonprofit is to use their surplus of funds to “advance the goals of the organization” (Kelly, 2012). With both profit and nonprofit, the ethics of the organization is key. For profit organization, their needs to be a balance on making profits and having honest business techniques. Nonprofit organizations can’t put their goal above and beyond all other goals. The balance of mass profit and making sure no harm is done to mankind is a balance scale that needs to be carefully considered. “Fiscal policy and monetary policy refer to the efforts to shape the health of the economy” (Kelly 2012). Fiscal policy is our government finding ways to increase employment by generating growth through their financial decisions. Monetary policy refers to our Federal government’s decision making in increasing our money supply and the rise and fall of interest rates. These policies played a critical role in keeping America from entering into another financial depression a few years back. The Federal government came to the aid of many major businesses to protect them from going bankrupt. A few of these businesses were General Motors, AIG, Bank of America, and Fanny Mae. Thanks to the Federal governments aid General Motors has made a complete recovery to be one of the top selling automakers today in America. With the banking industry, the Federal government drop interest rates to help homeowners refinance to lower their mortgages and encourage more new home owners.
Fast food is one business that entered the global market rather quick and easy. I would follow the trend McDonalds made when going worldwide. McDonald’s biggest reason for success is marketing itself. They spend an incredible amount of money to advertise themselves and keep their name known around the world. When they went worldwide, they customized their menus to offer more local cuisine at their establishments along with the regular items. By marketing and adapting to the changes of different countries, McDonalds went from a U.S. based company to worldwide known efficiently.
To take a similar business worldwide, I would need to decide whether I was going to have a direct investment or foreign outsourcing. Unless I had the financial stability of McDonalds, I would avoid direct investment due to the start up cost. Exporting and foreign outsourcing would be my first option. This would eliminate many of the government laws regulations you would need to follow.
Apple is one of the most successful businesses on the market. Their products are revolutionary and have change the way Americans use technology. I myself have an I Phone and it has completely changed the way I socialize and do business. All the different applications have made my quality of life go up. I can do online banking, socialize through face book, play games, and even book vacations from the palm of my hand.
There is no question Apple makes great products and thus has huge profits to boast. Being a profit organization, where does Apple draw the line with its social obligation to Americans? About 10 years ago, most of Apples products were manufactured here in the United States creating many jobs and profits for America. Now the U.S. based company manufactures all of its products overseas. The thousands of jobs that could be here in America are gone and according to Apple gone forever along with all the taxes our government would receive.
President Obama had a vision: “An economy that’s built to last- an economy built on American manufacturing, American energy, skills for American workers, and a renewal of American values” (Thompson 2012). Apple was a perfect example of this vision until profits gave way to their social obligation with the American people.

References
McGowan, K., (2012). Busn 4
Thompson, N., (2012, January 25). Retrieved from http://www.newyorker.com/online/blogs/newsdesk/2012/01/apple-and-obama.html