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Increase in employment

Introduction


This essay will identify the importance of consumers in the business environment and decide whether they are the main players or not by considering advantages and possible drawbacks. The supporting theory, examples and cases will be used in order to make a decision. The following aspects will be highlighted: market power, economic growth, inflation, scarcity of resources, unemployment, pollution and health issues.
To begin with, there are the following main players in the environment of business industry: government, producers and consumers. It is a well-known fact that each of them is incredibly important for the economy worldwide.
Concerning producers, they play a huge role in the economies of all countries. Firstly, producers are involved in the product-making process in order to satisfy customer's needs and wants. They supply the public with all the necessary goods and services, which improves the standards of life, such as health care, food and clothes production. Secondly, producers employ workers, who become able to afford their future spending in different spheres.
Regarding the government regulations, it can be said that without the government's impact on businesses and society, tremendous issues would appear in the world. Firstly, government controls the environmental aspect of the production and introduces various regulations to reduce the level of pollution and save the areas of natural beauty. Secondly, government takes control over the production and check whether the goods are safe to release or not.
Taking everything into consideration, it will be argued that consumers are the most important members in the world of business.

Market power

Firstly, consumer`s role in the business environment should be discussed.
Concerning the definition, consumer is an individual who buys products or services for personal use and not for manufacture or resale. A consumer is someone who can make the decision whether or not to purchase an item at the store, and someone who can be influenced by marketing and advertisements.[1]
Consumers are known to have unlimited wants and needs. Consequently, their demand on various goods and services is always high. Undeniably, consumer demand plays a huge role in both government and private business environments as without demand there would be no point to produce products. According to Henry Hazlitt, consumers account for approximately 70 percent of the national economy. Spending is an important role of consumers. Free market economies rely on consumer demand to gauge the allocation and distribution of economic resources.

Increase in employment


Consumer's role is incredibly important for the economy of the country as their demand on goods and services can create a great quantity of jobs for both local and outbound employees. It means that because of high volume of consumption employers have an opportunity to create more workplaces and hire workers in order to produce more products and increase the firm's outputs.
Undoubtedly, it is very beneficial for the government as it reduces the rates of unemployment in the country and workers become able to pay all their taxes and provide themselves with all necessities.
In order to demonstrate how consumer demand can create jobs, "Apple" case will be discussed.



Apple is known to be a famous technology company, which operates internationally. Please, see appendix 1.
CHARLES DUHIG (2012) states :"Apple employs 43,000 people in the United States and 20,000 overseas.
“The number of employees directly employed by Apple has grown nearly sixfold over the past 10 years, at a time when overall employment in the U.S. has stagnated. In the past year alone, Apple has added more than 9,000 jobs, and approximately two-thirds of our worldwide team remains in the U.S. Jobs at Apple span a wide range of roles — artists, designers, scientists, operations, construction, manufacturing, retail, tech support, sales, marketing, and the best hardware and software engineers in the world.” [2]

 

Economic Growth

Economic growth can be defined as an increase in the amount of goods and services produced per head of the population over a period of time. [3]
In order to meet consumer's wants, producers are trying to increase their outputs as much as possible. Consequently, a rise in a quantity of goods and services produced in the country may cause economic growth. It can be achieved by using several methods, such as new production theory, increase in its labour force, employing high-qualified workers and discovering new natural resources, which can be used as raw materials (oil, water, gas, timber)
Economic growth is an essential process for any developing or developed country as it leads to higher life standards, improved public services, reduction of unemployment increase in average incomes of population and GDP.
GDP of the country rely on consumer demand and spending a lot as it have a direct impact on the economy all over the world. Highly developed countries are known to produce a great number of services and goods either for export or for domestic consumers. Consequently, it increases the rate of money in the budget of the country and develops the economy itself. Gross Domestic Product can be defined as the ​total ​value of ​goods and ​services ​produced by a ​country in a ​year. [4]

 


Date: 2015-12-11; view: 895


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