The Business Environment



The Business Environment

Introduction

Business is a commercial activity of producing goods and services for financial and industrial aspects. In order to effectively produce goods and services, we need to build effective business environment. For Building an effective business environment we are required to analyze certain economic, social, and political situations and to find the optimal suitability for development of the market economic system (Knoop, 2004). In this paper I order to analyze business environment we are going to discuss the role of business, profit and nonprofit organization in the economy along with role of monetary and fiscal policy in the economy. In the end we shall be discussing global strategy and social responsibility with respect to stakeholders. The purpose of this paper is to let readers know about the important of various elements such as business, policies, international strategy in building up economy of a country.

Role of Business in the Economy

Business not only today but from decades plays an important role in building an economy. We can define business as an organization that is involved in goods and service production for commercial purpose. Thus, it is significant to understand that business as a firm can't be taken apart from act prospect of business as an activity. Economic system is not able to get the proper development without business sector. However, it is also important to note that every business plays different role in the economy, in other words there is difference in the intensity of the impact as it is all depended on activity or nature of the business.

Banks are effectively involved in service production such as banking for individuals, providing loans, and providing investors with sales of shares. In this we can say that business such as bank is to coordinate economy's operations where customer creates liability with the banks in terms of loan that is to be paid back by them after their loan interests considered as credits for them. Similar is the case, if we talk about organizations which produce goods to satisfy the needs to their customers. we can take apple as our examples, it sells handheld devices, online music, and high end computing devices which seems like they have generated livelihood for its employees whereas making surplus our of employees to make profits which eventually helps company to expand its operations (Friedman, 2006). Businesses are the growth engine of the most successful ...