complexities of the world of business

Group MembersQasim Ali (14171521-040)Iqra Nasir (14171521-015)Urwa ishtiaq (14171521-001)Nabeel Ahmad (14171521-050)

complexities of the world of business

Definition of BusinessAn organization or economic system where goods and services are exchanged for one another or for money.

Every business requires some form of investment and enough customers to whom its output can be sold on a consistent basis in order to make a profit.

Complexities Of Business1-InflationHow to control inflationFiscal PoliciesMonetary PoliciesExchange Rates2- A Company’s Growth3- Unemployment

DEFINITION of InflationA general increase in prices and fall in the purchasing value of money.

How to control inflation Controlling Inflation forms a significant part of the economic activities of a nation.The primary objectives of the governments of different countries across the globe. To this effect, effective economic policies are being formulated.Mentioned below are some methods, which have proved to be highly effective in controlling inflation to large extents.1-Fisical policies2-Monetry policies3-Exchange rates

Fiscal Policies This brings about a reduction in the Demand-Pull Inflation, in terms of increasing unemployment and relief the economic growths.

Lowering the expenses on governmental levelA fall in the borrowing amounts in the government sectors, on an annual basisHigh direct taxes, for reducing the disposable income

Monetary PoliciesMonetary Policies have a great role to play in controlling Inflation.These are policies which can actually control the rise in demand, by increasing the rates of interest and reducing the supply of real money.When interest rates increase, at the same time encourages the savings rate, remaining to an growth in the opportunity cost of expenditure.Increase in the real rates of interest decreases the demand for loans, thereby limiting the growth of broad money.

Cont…

Escalation in the mortgage costs also decreases the demand generated in the housing markets.

Exchange Rates

Income policies or direct wage controls: Setting restrictions on the growth rate of wages may decrease cost push inflation.

Generally, there is a fall in the wage inflation when there is an economic depression, leading to a rise in the unemployment rates.

A Company’s Growth

Growing a business takes time, especially if you are bogged down with day-to-day operations, but taking the time to increase company growth benefits you in the long run.Step1Answer customer needs with new products. . Your customers are your best source for tips on what products they need and the direction you should take your company. Listen to their suggestions and fulfill you can either improve your current product line or expand it.

Cont…Step2Try new advertising venues, such as getting into online advertising to expand your company.\Step3Add new employees and equipment when you need them.One of the biggest reasons companies experience growing pains when they are expanding is due to short staffing or a failure to add new equipment to keep up with demand.

Cont…Step4Study the market and the competition and open a new location nearby or take your business online to expand your global horizons.Don't be afraid to take risks when it comes to expansion.

Cont…Step 5Form a strategic partnership if you need to expand and do not have the necessary funds or resources. Contact other businesses related to what you do and explore options that benefit you both.

Unemployment

DefinitionThe number or proportion of unemployed people.

How to control unemployment

Some steps which can be taken by the government sectors or world bodies in reducing the level of unemployment are discussed below

1) Betterment of the Employment Exchange

It is important that employment exchange offices synchronize correctly and quickly with private companies which provide the maximum job opportunities. Government should grant more funds and powers to its employment exchange terminal.

2) Providing Better Educational Facilities to Citizens

Education creates employment, so a country with good educational facilities will have less unemployment.

3) Elimination of Child LaborWhen underage children start making money, they will look for more options to make money.

Schools are made for children and vice versa. Elimination of child labor can definitely help people to go for better options.

4) More Job FairsGovernment should initialize and create more job fairs which form a bridge between companies which have employment opportunities and people who need employment.

5) Increase in Government Grants to Public Sector Companies

An increase in grants to these companies will imply better functioning which will eventually help people who are unemployed.

6) Improving Pay Scales to Reduce Unemployment by Choice

Many people choose to be unemployed to do things they like or to avoid working on low pay scales. . Improving pay scales government and public sectors will give fewer options for people to stay unemployed by choice.

7) Legalizing Many Unconventional Methods of Earning

- There are many modes of making money which are considered illegal in many places but are done secretly.prostitution, gambling and betting. Legalizing these activities will create more employment, taxes for the government and would reduce exploitation.