Business Environment

Business Environment

Introduction

The purpose of this paper is to understand the role of business in the economy, understand the contrast between nonprofit and profit businesses in the economy. The impacts of the fiscal and monetary policies, lastly we will look into how a product or service can access a global market.

Discussion

Role of business in the economy

Owning to the fact that our economy is a capitalist one business has a pivotal role in the success and the proper functioning of the business. Businesses either small or large all equally contribute to the success of the economy. A country relies on the employment opportunities businesses create and the god and services upon which the whole country and the government relies on. Businesses are important because they pay taxes to the government with which the country can operate smoothly. Employment gives people spending power which maintains the flow of cash throughout the economy. Some businesses conduct international trade which brings foreign investment into the economy. Hence it is apparent that in order for any country to prosper it is mandatory to have strong businesses which strengthen the economy and enables the country to prosper (Akrani, 2011).

The role of nonprofit and profit businesses in the economy

Within the United States, nonprofit organizations (called NPO henceforth) are organizations which are exempted from taxes. NPO's are important for an economy since they are responsible for creating a better quality of life by mobilizing communities; fundraisers are the major source of finance for such organizations. NPO's ensure the wellbeing of people and focus on ameliorating the living standards of people, hence NPO's are necessary for any economy since they regulate the wellbeing of people (Anonymous, 2009).

Whereas profit organizations are all those businesses that generate a revenue and are supposed to pay taxes, in order to have the economy ...