Verizon-MCI Case Study

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Recommended: Economic environment of business chapter 3

An economic environment is an environment where internal and external economic factors of a business market influences how a business operates. Some of these factors include employment, income, inflation, interest rates, productivity, and distribution of wealth. They impact the behavior of consumers and are detrimental in the success or failure of a business in their domestic and global environments. The economic environment of Verizon-MCI, domestically and globally, is essential in the company’s sustainability. The company’s domestic environment, the United States, has developed much further than its global environment, China. Although, there is a difference between the two environments progression, Verizon-MCI has been able to withstand limitations presented by each environment. According to economist, Walt Whitman Rostow’s stages of economic development, Verizon-MCI’s domestic environment, the United States, has progressed itself to the fifth and final stage of economic development, which is the age of high mass production. In this stage, the country’s economy thrives in capitalism, adjusted itself towards mass consumption and portrays consumerism. The country’s income per head rose and consumers were able to attain control of consumption, which surpassed the basics, such as food, shelter, and clothing. There has also been a change with the country’s work force composition. The population of office workers and skilled factory workers increased and they have been able “to acquire the consumption fruits of a mature economy” (Ferraro, 2010). The United States has increased its concern with social welfare and urbanization has taken place. In addition, the country has made progression with technology. This progression has allowed ... ... middle of paper ... ...heir economic developments. The United States is in the fifth and final stage of economic development and China is in the third. The United States has been able to be more profitable in its economic development than China. Yet, each country has been able to sustain some type of progression. The United States has also, had succession with its social and environmental environments, which has lead to the country possessing one of the largest economies. China has had to reposition itself, economically. It still has social and environmental issues that have caused the country’s economy to grow at a slower pace than the United States. The country is making changes to its economic policies that are encouraging social and environmental modifications. Applying these changes to its economic policies, China is attempting to move into its final stage of economic development.

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