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Will McCarthy
9/25/15
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Research the Economy
The U.S. needs to realize that its greatest threat is self-generated. We have sold 16,613 of our best companies in the past 30 years, increasing the number of American-registered foreign-owned companies in the United States. Japan and China would never sell their companies to any interests outside of their countries, which is evidence in itself how far we are descending as a nation. When we sell out to foreign-owned companies, the technology and the profits go overseas. Natural resources, these resources are unlimited in nature, and they are not likely to be exhausted by human activities. Example are solar radiation, air, water, precipitation and atomic power. Agriculture is the cultivation of animals, plants, fungi, and other life forms for food, fiber, biofuel, medicine and other products used to sustain and enhance human life. An import in the receiving country is an export from the sending country. Importation and exportation are the defining financial transactions of international trade. In international trade, the importation and exportation of goods are limited by import quotas and mandates from the customs authority. Standard of Living is one of the three areas measured by the American Human Development Index, along with health and education. Standard of living is measured using median personal earnings, the wages and salaries of all workers 16 and over. While policymakers and the media closely track Gross Domestic Product (GDP) and judge America’s progress by it, the American Human Development Index tracks median personal earnings, a better gauge of ordinary Americans’ standard of living. GDP is one of the primary indicators used to gauge the health of a country's economy. It represents the total dollar value of all goods and services produced over a specific time period; you can think of it as the size of the economy. Inflation means a reduction in the value of money; in other words, a rise in general price levels. The meaning of the word inflation is to blow up or get bigger. If the amount of money in a country - the money supply - grows faster than production in that country, the average price will rise as a result of the increased demand for goods and services. Inflation can also be caused by higher costs being charged on to the end-user. These might be raw material costs or production costs which have risen, but could also be higher tax rates. These price rises cause the value of money to fall. You can therefore buy less with the same amount of money. But this does not need to have an immediate effect on purchasing power. Purchasing power only declines if wages rises less rapidly than prices.
Discuss our society
In today’s economy in the United States, the economy is mostly viewed as a middle-class economy. Most people are working and receiving a household income. The U.S. is also viewed as a capitalist society, which is where both government and private enterprise direct the economy. A strong middle class promotes the development of human capital and well-educated population. It is also makes stable source of demand for goods and services, also raising the next generation of entrepreneurs. A strong middle class also supports political and economic institutions, which back up economic growth. When talking about income, the U.S economy has grown unequal. Economists see that an increase in supply does not necessarily mean there is an increase of demand. For example, a pencil company decides to produce a mass quantity of pencils, even though there is not a huge demand for them. This leads to a period of unemployment and underutilized capital because the company is not making enough income to keep employees. This tends to happen a lot in our economy, and it becomes a huge problem when it comes to unemployment rate.
Research the political and legal environment
Getting shown with how politics and law affect business activities around the world is a critical concern of today’s successful global organizations. Especially in the past ten years, there have been an abundance political changes around the world that have shaped business operations. New markets have opened, old ones have closed, and the level of uncertainty that exists presents many marketing challenges. In the Political and Legal environment of our economy there are five main political causes of instability that affect the international markets. The five are forms of government have seem to be unstable, changes in ruling political parties, extreme nationalism, animosity targeted towards other countries, and lastly trade disputes. Also laws regulating businesses differ from country to country. In the U.S., government intervention in marketing tends to be relatively smaller compared to other countries. When a nation is politically stable, business activity thrives. Also when a nation is politically instable, it negatively affects marketing strategies.