Business Assignment

BUSINESS ASSIGNMENT 1
BUSINESS ADMINISTRATION
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BUSINESS ASSIGNMENT 2
SECTION ONE
PART A
a)
The United Arabs Emirates consumers are in a position to broaden their choice through access to
a wider range of commodities from abroad where they have good infrastructure, political
stability, and ample foreign assets bringing in international trade. This grants them access to
higher quality goods and services.
b)
A market is a place where two parties (buyer and seller) engage directly to help in exchange
goods and services. Online retailing is a form of electronic commerce which allows buyers to
interact directly with sellers by buying and selling of goods and services through the internet
hence being an example of a market (Xing et al,2011, p.350).
c)
A low unemployment rate indicates that there are more jobs and fewer workers which mean that
there are fewer available workers for each job opening, this gives advantages to job seekers and
provides more opportunity to citizens of the country and the margins of the labor force, including
the disabled and ex-offenders. The government also sources revenue in the form of taxation from
the large population of the employed personnel. This benefits the government by collecting more
tax revenue reducing its borrowing (Giulietti et al, 2013, p.25)
d)

BUSINESS ASSIGNMENT 3
A negative externality is a third-party cost that is produced by an economic activity but which is
not paid by the entities that are directly involved in the activity. Noise pollution during the
building and construction work of a new airport becomes a negative externality. After it’s built
the people near the place still suffer from noise pollution and air pollution during flight takeoffs
and landing of planes. This leads to stress-related illness such as speech interference, hearing
loss, sleep disruption and lost productivity.
PART B
e)
There is a possibility of an increase in public sector investment. A budget deficit may be run by
the government to finance infrastructure investment. Some investments in infrastructure include
building railways, improved telecommunications, more housing, and new roads. Investment in
public sector investment can help in increasing long-run productive capacity and enable a high
rate of economic growth.
f)
A low-interest rate causes higher consumer spending. This is because consumers pay less in the
form of interest and this gives them more money to spend and hence a great effect of increased
spending across the economy. On investments, a lower interest rate encourages investments as
businesses and farmers can purchase key assets such as large equipment to increase the
efficiency and effectiveness in the processes simply because borrowing is easy due to low costs