A business is an economic system which provides goods and services with the aim of generating revenue. The notion of a possibility of being able to earn a profit itself offers incentive for starting ones own businesses. For growth and development to be achieved in any given economy, the government must strive to ensure that the environment is conducive which induces investments and while at the same time attracting international investments.
Business offers an alternative source of employment in the economy (Assail, Anises amp; Visual, 2006, p. 2969). This reduces the level of unemployment thereby reducing the rate of dependence on the working class of the economy. Additionally, this reduces social crimes like robbery as it provides most people with the means of livelihood. Business enables a country earns foreign exchange from the export of its prod cuts in forms of goods and services to other countries in the global market. Foreign exchange is extremely valuable to any county.
It is a means of payment for payment of the countries imports and helps to maintain a healthy balance of payment Of countries account. Foreign exchange also helps to make the individual businesses more profitable in the international market thus in the process strengthening the economy of the country. Businesses, especially international business increases the competitive capacity in the economy. The resulting competition encourages innovation in the industry which has long term benefits to the economy of the country. Business plays a vital role in the economy of the country by production of goods and services.
Additionally, it fills the gap in the needs of the society and other businesses by the provision f employment technical innovation (Assail, Anises & Visual, 2006, p. 2969). Compare and contrast the roles of for-profit and nonprofit organizations in the economy Nonprofit and for profit making organizations play vital roles in the growth of any given country’s economy. Organizations that are for profit produce goods and services and also provide various employment opportunities. The main aim is to generate financial gain while the nonprofits organizations main aim in the business is not financial generation.
Contrarily, they offer employment, take in revenue from various resources and provide both goods and services with the main aim Of serving humanitarian or environmental needs. The for profit organizations help raise the standards of living. This they do through submission of taxes to the government which spends it in the provision of basic facilities to the citizens and takes care of the general wellbeing of the society. The impact of current fiscal and monetary policy on the economy The government and the foreign reserve use the fiscal and monetary policy to steer the economy in the right direction.
While, In fiscal policy, the government uses its spending and taxing powers to generate the desired impact on the economy, monetary policy for ignition or slowing economy, and its controller is the central bank. Both the fiscal and monetary policy has both been employed by the government. The aim is to influence both contraction and the expansion of the GAP as a measure of economic growth (Assail, Anises ; Visual, 2006, p. 2989). Lowering of taxes and increasing of expenditure known as expansionary fiscal stimulates the economic growth with much broader reaching effects to the economy.
This is through the accumulation of excess debt and the subsequent issuing of interest bearing bond to finance the spending that increases the national debt. Additionally, it leads to crowding out which raises rates indirectly because of the increased competition for the borrowed fund. The Federal Reserve employs tools such as the open market operation. This is through the purchase and sell of the government bond in the open markets. This can increase or decrease the bank reserves while at the same time influencing the supply of money in the economy.
They also make reserve requirements or change the discount rates which always have an immediate impact in the global economy. Monetary policy has, therefore, proved efficient in slowing down the economy but extremely ineffective in mind icing economic expansion. Cataracts strategy for accessing global market Marketing is an exceedingly critical area in the growth and eventual success of the organization not only in the short but also in the long run (Allison, 2006). Marketing opens out the organization to the outside world or the target audience.
Just to ensure success and gain competitive advantages. In order to gain accessible¶y’ to the global market, Cataracts has organized its products in a way that makes them either seasonal or unique to the location of the café. The company’s retail locations also offer specialty coffee beverages, gourmet food items, coffee beans, tea, and a variety of coffee accessories (Allison, 2006). This is a marketing strategy aimed at diversifying the organization’s operation and eventual breakthrough in the global market. The impact of Apple’s social responsibility on the supply chain Apple
Computers is a firm based in California that designs, develops and sells computer software, and personal computers. A progress report released in nanny supplier revealed the high noncompliance rate of its suppliers to comply with standards for workplace safety and its huzzah management practices. Thus to stem criticism on the company’s social responsibility, the company joined the Fair Labor Association making it the first high-tech company to do so.