The Business Environment

1. Describe the role of business in the economy.
Have you ever wondered why there are so many businesses in the world? Or why do we need them all? Business is what keeps the economy moving forward. If you think about it the more business there are out in the world the more people that have the opportunity to gain employment. Employment levels influence a range of other standard-of-living metrics, such as disposable income, home foreclosure rates and new small business startups. When business are doing well the economy benefits. For example banks are more willing to lend consumers money. Interests rates are lower some businesses even given back to the community.

2. Compare and contrast the roles of for-profit and nonprofit organizations in the economy.
You would think that all business is out to make money. However that is not the case. There is such a thing as non-profit organizations. A business is an organization or economic system where goods and services are exchanged for one another or for money. Non-profit Organizations commonly known as NPO are associations, charities, cooperatives, and other voluntary organizations formed to further cultural, educational, religious, professional, or public service objectives. Their startup funding is provided by their members, trustees, or others who do not expect repayment, and who do not share in the organization's profits or losses which are retained or absorbed. Businesses pay a significant portion of the taxes in the United States. Business pay including income tax, property tax and employment tax. Having more businesses in the local economy can boost tax income for local governments. Once you bring in more money then you are able to repair roads, or provide more money for better education and improve public services. Businesses are a large part of the economy. If more business are doing well the better off the economy does. Business benefits not only the person starting it up, but everyone in that area or in that economy benefits. They create most new innovations, and provide a vast range of opportunities for new businesses, which serve as their suppliers.

3. Discuss the impact of current fiscal and monetary policy on the economy.
Presently in the year 2012 many people think the United States has a poor monetary policy, which has caused the economy to decline. The government has spent money that we don’t have and caused the United States to have trillions of dollars in debt. However, when money is barrowed it is used to bail out different things in the economy. Bailing companies out boost the economy in positive ways. For example if a company is saved, employees won’t lose their jobs. The election of 2012 may change the monetary policy that we have in place right now. 4. Select a product or service with which you are familiar and outline a strategy for accessing global markets. Automobiles are products that are frequently used around the world. Most cars in America are imported. Just to name a few Mercedes, Honda, Toyota and Audi. For the automotive industry to reach global markets they do many things to reach different markets. The main tool in the strategy is to use the media to reach a wide range of consumers. The media tools include but aren’t limited to the internet, T.V. advertisements, and radio. Another step in reaching the global market is set up car shows to gather a large crowd. At the car shows put on flash demonstration and static display of the products. Another step the automotive industry takes in reaching the global market is sponsor events and teams.

5. Select an organization with which you are familiar and discuss the impact of that organization’s level of social responsibility on a stakeholder group of your choice. Wal-Mart is an organization that is known by many. With Wal-Mart being a huge company socially they are responsible for providing lots of jobs to people in the communities that the stores are located. Wal-Mart has reduced waste by 80 percent. There a now a lot of Super Wal-Mart that have grocery sections. With the grocery section Wal-Mart tries to get its produce locally rather than get it imported. Wal-Mart has come up with new ways to use our business model to help address a large social issues that effect the community in which we operate, we do that in a way that returns value to the shareholders, associates and its customers. Wal-Mart is trying to make the trucks more efficient by making them eco-friendly for deliveries. The stores are now becoming more stainable to make the stores more efficient. As the stores are more sustainable the cost of goods is lower for the customer. Wal-Mart trains its employees more than they have in the past.