Business Management and Macro-Economic Policy

BUSINESS MANAGEMENT
AND MACRO-ECONOMIC
POLICY

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
General economic concerns.............................................................................................................3
General economic concerns.........................................................................................................3
Government policies and impact on business environment........................................................3
Labour markets and impact on the business environment, demand and supply..........................4
Income distribution and impact on business environment..........................................................4
Employment and their impact on business environment.............................................................5
Monetary policies............................................................................................................................5
Monetary policies........................................................................................................................5
Supply and demand forces of money...........................................................................................6
Key factors which affect demand for money...............................................................................6
Implications of different aspects of demand for money..............................................................6
Fiscal policy.....................................................................................................................................7
Fiscal policy.................................................................................................................................7
Taxation and its macro-economic effects....................................................................................7
Social security, contribution, pensions and benefits....................................................................7
Public expenditure deficit............................................................................................................8
Sustainability of public debt........................................................................................................8
Capital markets................................................................................................................................9
Capital markets............................................................................................................................9
Primary markets...........................................................................................................................9
Secondary market........................................................................................................................9
Crowdfunding............................................................................................................................10
Cryptocurrencies........................................................................................................................10
CONCLUSION..............................................................................................................................11
REFERENCES................................................................................................................................1

INTRODUCTION
The file is on economic concerns and macro-economic policies concerning the environment of
the business. The economic concerns such as government changing economic policies, labour
markets and income distribution and employment have been covered up. The impact of these
factors on businesses have been emphasised. The monetary policies made by a country which are
in concern with market factors have been discussed. The supply and demand for money has been
discussed along with key factors of money demand and the implications. Fiscal policy refers to
the government spending and making policies related to tax for influencing economic conditions
which includes aggregate demand for goods and services, inflation and economic growth
(Siddiqui, 2017). Public expenditure and spending have been talked about with concept of
sustainable debt for the same. The capital markets have been talked about which have been sub
divided in primary market and secondary market and help in finance for the companies.
Crowdfunding measures have been discussed. Cryptocurrency concept has been illustrated. The
report consists of a detailed analysis of the above concepts.
General economic concerns
General economic concerns
Economic issues are those which are faced by the world economy such as inflation, tariffs rate,
liquidity etc. These concerns can hamper the growth rate of the economy. For a country, it is
necessary that these issues are solved by scientific measures such as control on interest rates,
using central bank measures such as repo and reverse repo to control on the economic concerns.
These factors are interlinked with employment and economy (Siddiqui, 2017).
Government policies and impact on business environment
Government policies are mainly focused on increasing business and encouraging people to start
own business. This is with a vision to create employment in the public and improve economy
and money circulation. Public would like to start their own ventures and would require funding
for them. Government would ask the central bank to revise interest rates according to the
liquidity position of the country (d’Albis, Boubtane, and Coulibaly, 2018). The interest rates
being low will help boost business activities. Government also moulds its policies to favour the

corporate expansion, for instance, retail, which is extended help to expand in branches and offer
employment.
Labour markets and impact on the business environment, demand and supply
The labour markets in the country are mainly of manufacturing and IT. The labour laws are
followed in the country such as minimum wages, number of working hours per week etc. The
labour markets comprise of manufacturing of commodities like cars, steel, food products etc.,
they also are a part of the service industry like hospitality, airlines etc. The labour provides their
services in return of wages and to buy goods and services. Businesses use their services to
produce goods and services. The labour markets are of two types: skilled and unskilled.
Businesses provide training and development measures to make the labour upgrade their skills
(d’Albis, Boubtane and Coulibaly, 2018).
There is demand of labour in the market for growing businesses and their branches. The
companies have positions for technical skilled labour with the boom in IT and there is a market
standard of payment in the businesses which the companies decide together as to the standard
rate of payment. There are many fresh graduates who are coming from the universities and they
are absorbed in IT companies. The supply is however, more to the demand and competition
exists in the labour market.
Income distribution and impact on business environment
The income distribution is not apt in the society. The working environment consists of two types
of jobs-white collar and blue collar. White collar jobs are of the top posts like CEOs, business
owners, directors of the company while blue collar jobs are the ones of labour working in
factory, employees working in the company. The income of white collared ones stand much
higher than blue collared ones. The main portion of the revenue goes to the business owners and
big investors of the company while the labour is being paid fixed wages. Here comes the
difference in the pay structure and income distribution. Its negative impact is while the top notch
do not feel the heat of inflation the blue collared ones have to bear the effects. They are not able
to increase their standards of living and not able to purchase better products and services. Some
businesses have started realising that they will have to pay their employees more so that they can
buy their business manufactured commodities (Twinoburyo and Odhiambo,2018).