BUSINESS ENVIRONMENT

The Business Environment



Abstract

In this paper, we try focus on the business environment. The paper also highlights and compares the roles of for-profit and nonprofit organizations in the economy. The paper also discusses the impact of current fiscal and monetary policy on the economy. The paper selects a service and defines its strategies for accessing global markets. In Last paper and discuss the impact of that organization's level of social responsibility on a stakeholder.

The Business Environment

Introduction

Economic and other rational decision making involves choosing one of the available actions for the environment that the decision maker is facing, given his or her objectives. Rational decision making and the subsequent choice of action depend on these two primary factors. Economics of strategy is concerned with how a rational decision maker's behavior in choosing an action can be explained by logical and strategic reasoning. A simple decision problem can be viewed as the simplest strategic problem, when there is only one agent for a given environment.

Role of business in the economy

Economies play a great role in businesses; the impact of a stronger economy can spread quickly across all businesses. Once consumer begins to increase their spending, firms experience a stronger demand for their products and may begin to hire more employees to accommodate that increased demand. They may also need to expand their operations, which results in increased demand for supplies, construction service, and materials.

Then, the construction firms may have to hire more workers to accommodate the increased demand for construction. As more jobs are created, the general income level of consumer rises, allowing them to spend more money. In addition, investors who invested in business tend to earn a higher return on their investment when the economy is strong, and they may spend much or all of that return on product and services. Thus the extra income causes a favorable ripple effect throughout the economy.

Role of profit and nonprofit organizations in the economy

Both profit and nonprofit organizations has the positive impact on economy. Profit organizations will hire the employees, due to which the employment level increases that have the positive impact for the economy. There are many more examples that are impacting positive turn in the economy. Similarly, nonprofit organizations are working for the people living in the economy without any profit. They are socially responsible for people of the economy.

Impact of current fiscal and monetary policy on the economy

Fiscal policy refers to the government's use of spending and tax policies to influence the economy. When the government increases its spending for defense purposes or raises personal income tax rates, it affects the total level of spending in the economy and, hence, will affect the overall macroeconomic activity of a nation measured by such factors as gross domestic product (GDP), employment, and inflation (Taylor, 2000).

This is true for almost any change in spending or taxes. Any change in government spending or taxes will also affect the government's budget deficit. An increase (decrease) in spending or a decrease ...