BUSINESS IMPLICATIONS

Question/ Answers

[Name of the institute]Question/ Answers

Answer 1

Economic

Timely evaluation of future challenges enables the business to update their directions and align their organizational goals and objectives. Economic impact has huge influence on the development and growth of the businesses. Once the inflation rates have picked up the hype, it becomes very hard to bring it down since not only the government but individuals have to suffer on daily basis. On the same page, interest rates are set on the basis of economic strength of the country. Here uncertainly is increased when there is lack of stability in the country. This lays direct impact on the exchange rate of the country. According to Kiss et al. (2012, pp.266-290), the world is getting closer and closer and is engaging in business with each other. The country with better exchange rate will tend to enjoy more profits as compared to the ones with poor exchange rate. One can see the labor costs in third world country quite low since there is high rate of unemployment and people have fewer chances to earn their livelihood. The situation of stock market also receives the influence from the economic condition of the country. Stock exchange is the heart of the business generation of the country. The political situation of the country has direct impact on the stock exchange market. Lack of stability and sudden coups bring the stock exchange down with either fewer or no business. The credibility of the country gets on stake since the sense of accountability gets harmed. The fluctuation in fiscal and monetary policies does nothing but de-stabilize the business cycle of the country. The consequences are laid on both government and private sectors. Tight economy changes the consumer market trends. There is low disposable income that consumers can spare on buying their needs. Businesses find it hard to create profits and sales that directly affect the economy. On the other hand, if the economy is strong then countries can take bold decisions to initiate new projects and penetrate further into the markets. Here the political stability has to be at par since it helps in earning the trust of other businesses that may reside in other countries. There is another implication that indicates towards the practice of foreign alliances to develop and operate businesses. The home sector receives immense support whereas foreign businesses can also make considerable profits out of corporate bonds. One can see mergers in the same context that tend to make use of the above mentioned variables in order to receive or give support to their economic condition (Pearce & Doh (2012, p.2).

Technical

According to Majaro (2012, pp.1-100), the century is full of technological boom as every day some new addition and amendment is coming that changes the mode of consumption in the market. Many years back, it was thought that once the basic infrastructure is developed it becomes very easy to continue on the same model. However, the technological progression has changed the mindset ...