Business and the Economic Environment

This is a fundamental cost that can be used to make future decisions. They ought to be carefully considered to avoid being off the hook (Brooks, Weatherston & Wilkinson, 2004). An MBA student is like an investor who often times invest in the education sector. I decided to weigh other options before but decides to forego them and quench the thirst for knowledge. The cost of these best-foregone alternatives is the opportunity cost. The Working of Competitive Markets The oil market is made up of different buyers and producers. These producers complete amongst each other to reach out to a wider market. This is to ensure that they are able to satisfy their buyers (Davis & Serrano, 2017). The producers are motivated to endeavor a larger market if at all the plea is high and the profits are mouthwatering.

The consumers will likely stick to a certain preference and even plead for more if the prices favor them or if they cannot do away without the product. This will mean that the producers will be more than the consumers and the market will be experiencing a surplus of the product (Brooks, Weatherston & Wilkinson, 2004). This excess supply will lead to a reduction in prices as each producer tries to win more consumers. Thus, in the next 12 months, the prices are likely to reduce as the market tries to clear the excess product until an equilibrium is attained. In economics, holding all other dynamics constant, the price of a product will vary until it settles to an equilibrium point whereby quantity demanded is equal to quantity supplied (Brooks, Weatherston & Wilkinson, 2004).

Demand and the Consumer In any market, the behavior of consumers is determined by the price and quantity of a product demanded (Brooks, Weatherston & Wilkinson, 2004). The health sector is one of the rapidly growing industries in the world. Ethanol is used as an antiseptic and its close substitute would be propane-2-of which is not portable. This give ethanol an upper hand. It is also used as an antidote to methanol. It is also termed as grain alcohol which is used to uplift moods and taken for recreation. However, this has not been without its ups and downs. Energy is a consumer based product. The population is increasing day in day out. The renewable sources may not be able to fully sustain the demand.

The energy required later will be more than the current situation. The opportunity cost incurred may be high in that the oil-driven economies will suffer enormously which we increase overreliance on other countries (Brooks, Weatherston & Wilkinson, 2004). This swap may require much consideration on such countries which will thus be injurious to such countries. If prices increases, supply are bound to increase while a decrease in prices will likely lead to a decrease in supply (Yagan, 2014). Thus, if total costs incurred are high, the supply is bound to decrease. The technology required especially in during sitting and transmission is hi-tech. It is a well-established company in the food industry. The company has a well-established payment system that is very convenient for everyone.

This has played a great role in enhancing customer satisfaction. This enables the company to overcome the heated rivalry in the industry. This is backed up by the fact that it does not have many substitutes. It is from this point that market penetration, expansion and diversification play a major role in determining the growth and development of a business which affects the economy of any country or state. However, for all these to accrue, there must be a source of power. The heart or the driving force in the last few centuries was oil. Oil has been a vital source of energy. It has been the cure for every economy. One of the most important resources that led to industrialization and modernization will likely have become extinct.

There is a call to initialize other methods to replace this kind of energy. Thus, the future of oil is hanging on the balance as the use of the product is decreasing each day. Countries that depend on oil as a major product of foreign trade may be hit hard by these advancements (Brooks, Weatherston & Wilkinson, 2004). The major resource that has had a great impact on the modern day man requires substitutes whether because of fear of wells running dry or due to environmental damage. It has been able to acquire a broader market for its goods and services. It has had an opportunity to operate in countries where labor is cheap thus saving on operation costs. Most countries offer lower tariffs to multinational countries, thus Coca-Cola has been able to enjoy tax cuts.

It has been able to attain much customer loyalty as most people like been associated with greatness. The company has had its own negative attributes. In most cases, the private sector is one of the biggest employers, unlike the public sector (Brooks, Weatherston & Wilkinson, 2004). The initiative requires government intervention which is mandated with putting into place policies that guide how it is run and operated. The demand and supply for labor are influenced by educational attainment, family situation of an employee, government regulations like taxes and payment which a major motivating factor in any employment sector. One of the topmost jobs in an organization is the executive jobs. This is characterized by an executive compensation or pay at the end. Thus excessive executive compensation may bring about an economic crisis in the future.

The government, the Firm and the Market The healthcare sector is one of the essential industry in any country. In the recent past, the healthcare market has been experiencing an imbalance in the supply of public goods. The government spends a fortune on the sector yet receives dismal results at the end (Ministry of Labor and Human Resource, 2016). It invests more in training specialists, building health care facilities and in ensuring the availability of medicine. Proper record keeping which requires investment in information. Proper information relay on good healthy living through education. The government ought to put regulations that help ensure quality drinking water and food too. It ought to put measures to ensure a clean environment. Investing in all these factors will be far-fetched in ensuring that some illnesses are curbed before they even occur.

This may lead to low sales in the company and as a result a reduction in production which may lead to laying down an employee (Brooks, Weatherston & Wilkinson, 2004). If the government decide to reduce the duty on tech products, consumption of Apple products would increase. This would lead to an increase in production, employment opportunities and revenue. This would lead to an increase in investment. If the culture required that every student in their 5th grade possess a personal computer, sales would increase. This will help enhance food security. The government may decide to lower the rate of interest. It may also increase the supply of money. This will increase spending in the economy (Brooks, Weatherston & Wilkinson, 2004). As a result, will enhance the increase in the demand for agricultural produce.

It was formed with an essence of bringing together states with a common social, economic and political objective. The Union is important to every member state in that they all trade using a common currency (Platzer & Müller, 2013). This plays a greater hand in that it helps reduce a great trade barrier among countries. It offers a platform to resolve differences between member states. This helps alleviate the possibility of war emanating in a given region which may lead to inflation. This may bring unrest to the country which will affect the whole block. It may at times lead to enmity which will lower trade. It operates as a block and thus may leave out the interest of smaller countries. This may affect the economy of that member state.