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Characteristics of the business environment
Characteristics of the business environment
Characteristics of the business environment
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Business cycles affect all individuals within the population. Whether as part of the general public, consisting of customers and consumers, or as part of the world of business, from small local companies to large multi-national organisations.
Obviously, all governments aim for economic growth within societies, in order to achieve national progression. This can include various factors such as high levels of employment, investment and general business confidence. However, things do not always turn out as planned. For example, if economic growth slows down, this can have severe consequences, such as rising levels of unemployment, decreased consumer spending, and eventually bankruptcy of expendable businesses.
In this assignment, I will explain the nature, causes and implications of the business cycle, by addressing the four stages individually.
The theory of business cycles actually began a long time ago with the idea of “long waves” (Reijnders, 1990), and Kondratieff was one of the initial economists to enforce this principle. He believed that the ”duration of the long wave was 48-60 years”. Another economist, Kuznet, believed that as well as long waves , there were smaller cycles within this long period of time which were intermediaries between his extended long wave that lasted between 6 to 70 years. These periods in between were known as short term business cycles. Finally, it was obvious that the system of having short term business cycles was more accurate and efficient than other theories. They allowed for a more reliable prediction of future trends from previous data.
Theses cyclical movements were based upon the economic position of the population over certain time periods or until specific periodical ch...
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5) William Anderson (November 24th 2004), Why Business Cycle Theory
Matters [Online], Available from:http://www.mises.org/fullstory.aspx?Id=1664
6) Lakshman Chuthan and Anirvan Banerji (2004), Beating the Business Cycle [Online], Available from: http://www.randomhouse.com/doubleday/currency/catalog/display.pperl?isbn=9780385509534&view=excerpt
7) Worthington, I. and Britton, C. (2003), The Business Environment : The fourth edition, Pearson Education Ltd., Great Britain.
8) Zanny Minton Bedoes, The Great Thrift Shift, 22nd September 2005, Accessed on: Monday 6th March 2006, [Online] Available from: http://www.economist.com/surveys/displaystory.cfm?story_id=4418328
9) Samuel Brittan, Financial Times: Britain‘s delusion of Prosperity, 31/01/02 Accessed on: Monday 6th March 2006, [Online] Available from: http://www.samuelbrittan.co.uk/text105_p.html
This paper aims to discuss the Short-Term and Long-Term Impacts of the Great Recession and
In answering the above question, I shall address myself first to examining manufacturing exports and the British position, followed by a word on the Imperial Preference which hindered British trade flows with the rest of the world. I shall go on to talk more generally about whether there has been a decline in the aggregate economy (essentially exploring the pessimistic implied in the title). Further, I shall argue that the British economy has performed well against some serious cultural and structural constraints and should not be subjected to unduly negative analysis.
Princeton, 1963. Hailstone, Thomas and Rothwell, John. Managerial Economics, pp. 93-95. Prentice Hall, 1993.
The business cycle is the short-run alternation between economic downturns and economic upturns (Investopedia n.d.). A recession is an economic downturn and happens in every country and some recessions are worse than others and the output of GDP and employment are falling farther and faster. The great depression lasted from 1929-1933 and was a deep prolonged downturn in the business cycle before a recovery/expansion of the business cycle occurred and GDP and employment started to rise (Krugman & Wells. 2012). The next recession lasted from 1981-1982 and was comparatively smaller than the first (Krugman & Wells. 2012). More recently in 2001 a slump in the economy was noted and was followed by the great rescission of 2007-2009 (Krugman & Wells. 2012). Recession is defined as a “period of at least two consecutive quarters (a quarter is three months) during which the total output of the economy shrinks” (Krugman & Wells. 2012). In the United States the National Bureau of Economic Research (NBER) is assigning the task of determining when a recession begins and the NBER looks at a variety of economic indicators such as employment and production (Krugman & Wells. 2012). Every business cycle recession has a negative impact on the economy the recession’s deferrer on the strength of the impact on the country. Consider the two charts for Figure 21-5 of the more recent recessions of 2001 and 2007. The Recession of 2001 did not last as long as the recession of 2007 and did not have as much of an economical hardship on the business cycle and as shown 2007 dipped greatly in industrial production. In the second chart it demonstrates a recession at the point the economy turns from expansion to recession or the business-cycle peak. Then in the char...
Kroon, George E. Macroeconomics The Easy Way. New York: Barron’s Educational Series, Inc., 2007. Print.
4. Samuelson, Robert. "The Great Depression" (2002) The Concise Encyclopedia Of Economics. 30 July 2005
“Microeconomics and macroeconomics can be described in terms of small-scale vs. large-scale or in terms of partial vs. general equilibrium. Perhaps the most important distinction, however, is in terms of the role of equilibrium. While issues in microeconomics seldom challenge the notion of a naturally occurring equilibrium, the existence of business cycles and, especially, unemployment suggests too many observers that macroeconomics raises issues of a different character.” (McConnell & Brue, 2004).
Susanne Hoeber Rudolph Economic and Political Weekly , Vol. 35, No. 20 (May 13-19, 2000), pp. 1762-1769 Published by: Economic and Political Weekly
In the "Dawn of Affluence" J. Stevenson and C.Cook discuss the effect of the Great Depression on the world economy, in particular, the British economy. They start the account by contradicting the long held view of many, that the Depression was a time ."..of unrelieved economic disaster." Through-out their account, they point out many facts and figures that support their view, either neutral or positive growth figures, e.
The objective of this research is to help a company or an entrepreneur understand the business environment better as well as customers’ needs and, therefore, make better business decisions.
Parkin, Michael. "US Inflation, Unemployment and Business Cycles." Institute, CFA. Economics. Boston: Custom, 2011. 188-210. Print.
McHugh, J. M., McHugh, S. M., & Nickels, W. G. (1999). Understanding business. (5th ed.). New York: McGraw-Hill.
In order for any country to survive in comparison to another developed country they must be able to grow and sustain a healthy and flourishing economy. This paper is designed to give a detailed insight of economic growth and the sectors that influence economic growth. Economic growth in a country is essential to the reduction of poverty, without such reduction; poverty would continue to increase therefore economic growth is inevitable. Through economic growth, it is also an aid in the reduction of the unemployment rate and it also helps to reduce the budget deficit of the government. Economic growth can also encourage better living standards for all it is citizens because with economic growth there are improvements in the public sectors, educational and healthcare facilities. Through economic growth social spending can also be increased without an increase of taxes.
Economic growth is one of the most important fields in economics. In current generation economic is developing well. Economic growth is really important to country and for the world as well. Economic are one of the identity for country because it shows a country development and attraction for other countries (F, Peter. 2014). For example well economic develop such as Singapore, Dubai, New York, and Japan. These countries are well develop and maintaining their economic growths. Economic growths are really important because higher average incomes enables consumers to enjoy more goods and services. Then, lower unemployment with higher output and positive economic growth firms tend to utilize more workers creating more employment. Enhanced public
Business forecasting can be used in a wide variety of contexts, and by a wide variety of businesses. For example, effective forecasting can determine sales based on attendance at a trade show, or the customer demand for products and services (Business and Economic Forecasting, p.1). One of the most important assumptions of business forecasters is that the past acts as an important guide for the future. It is important to note that forecasters must consider a number of new information, including rapidly changing economic conditions and globalization, when creating business forecasts based on past sales.