May 13, 2013
1. Describe the role of businesses in the economy.
Did you ever wonder why there are many businesses in this world? And why we need them all? Business is what we need to keep this country moving ahead. I think if we keep bringing businesses in our country that there will be more opportunity for more people to find employment. Employment levels range from standard of living, such as disposable income, foreclosures and new business startups. In the United States, our economic system is capitalism, also known as “private enterprise system” or a “free market system” and is based on private ownership, economic freedom and fair competition. (Kelly and McGowen, 2012) We are free to start a business and keep our profits and fair competition. This helps the economy grow by putting money back in people’s pockets which results in saving money and spending more money on products and services and this makes the economy. When the businesses are doing well it benefits the economy. 2. Compare and contrast the roles of for-profit and nonprofit organizations in the economy.
There are types of businesses, for-profit and nonprofit. Both organizations are alike in that they can be set up and prepared like a business where both can make funds. However, a for- profit business is a duty to make a profit for its shareholders, they also want to make profits to pay upper management and their employees. A non-profit may make money but all their proceeds need to go back into the organization. They are usually run by volunteers and normally involved for a cause. Wisegeek (2012) states “a nonprofit usually has a charter, is organized for a purposed that serves the community and it does not pay dividends to stockholders. 3. Discuss the impact of current fiscal and monetary policy on the economy.
Present fiscal policies are apt to discourage business investments through considerably more regulation enacted since the beginning of the recession. Dodd/Frank; for example, restricts the ability of banks and other financial institutions to make loans. Also, the risk of higher taxes and the random nature of the government’s imposition of new types of taxes and regulations suppress growth. Currently monetary policy typically would support investment through low interest rates, but due to the fiscal policies or risk thereof, low interest rates are not pretty. On the other hand, those organizations involved with private enterprise are realizing much victory. 4. Select a product or service with which you are familiar and outline a strategy for accessing global markets.
T-Mobile is a dependable service that is working to build its brand in global markets. Presently the wireless side of T-Mobile is only in the United States. The United States ranks number third in the nation with mobile phone subscribers, both India and China almost triples the United States subscribers on cell phones. In order for T-Mobile to travel into global wireless market these two countries would be a good place to start. China currently has the largest subscribers of mobile phone users.
Since China’s business is already booming with new industry the best strategy to go global would be to enter a joint project with an already established China based business. T-Mobile knows the mobile phone business and the China based business would already be familiar with the communications, laws and regulations. The China based business would also be familiar with the potential workforce’s differences such as principles, language and attitudes. The organization would allow China based business not already in the wireless industry to enter the wireless market and allow T-Mobile the global branding it seeks. 5. Select an organization with which you are familiar with and discuss the impact of that organization’s level of social responsibility on a stakeholder group of your