Business Management and Macro Economic Policy

BUSINESS MANAGEMENT
AND MACRO ECONOMIC
POLICY

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
General economic concern..........................................................................................................3
Monetary Policy...........................................................................................................................5
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............................................................................................................................8
Primary markets...........................................................................................................................9
Secondary market........................................................................................................................9
Crowdfunding..............................................................................................................................9
Cryptocurrencies........................................................................................................................10
CONCLUSION..............................................................................................................................10
REFERENCES................................................................................................................................1

INTRODUCTION
Government economic policies are the measures with the help of which the government of a
country try to influence and make decisions regarding the direction of the economy of the
respective country. The government also look out the labour market, the market refers to the
supply and demand of the employees in which business provide demand of labour and people
provide supply of labours. The distribution of income is a way with the help of which
government measure how many people earn different amount of income. Monetary policy is a
tool which is used by central banks of countries to influence demand and supply of money in an
economy. Fiscal policy is a tool in which government collect the revenue from public via taxes
and further uses it for country development. Capital market is a market in which long-term debts
and equity-backed securities are bought and sold (Huynh and Nguyen, 2020).
MAIN BODY
General economic concern
Introduction
The general economic concern is a challenge which is faces by the countries while they try
to improve their economic position in order to gain opportunities. Economics is a concerned with
the production, distribution and consumption of product and services. Basically, it covers the
decision and choices of the individual, businesses and government regarding the allocation of
resources. The government faces the challenges and concern related to poverty, unemployment,
environment security, inflation, health crises etc (Oxford Analytica, 2021).
Government policies and its impact on business environment
Government of the countries generally established various rule, regulations and policies
that provide guidance to the businesses. This is not only existing in national level but the states
also set their own rules to influence businesses. The stable political culture provides variety of
opportunities to the business to expand their company all over the world. Any increase in the
taxes reduces the investment and the impact of which the spending pattern of the consumers also
gets decreases. The reduction in the private investment result into the shrink’s production of
products and services. The interest rate of the borrowings set by the government directly
influence the business financial conditions. It is because if the interest rate increases the spending
pattern of the customers decreases and the impact of which the companies will got get money for

their daily business operations and also for further expansion (Abdulsahib, Eneizan and
Alabboodi, 2019).
Labour market and their impact of business environment
The labour market is existing at the place where businesses hire the workers for the
functioning of their day-to-day operations. Basically, the amount of labour needed in a business
depends upon the nature of business such as capital extensive or labour extensive. The business
that depends on manual work more rather than technology than it is know as labour extensive
and vice versa for capital extensive. Any shortage in the labour market badly affects the business
to the large extent such as recruitment of new and talented people which helps their business to
grow faster as soon as possible. Shortage of labour increases the demand of the employees and
the impact of which the companies need to increase their wages in order to retain them. And if
not than their competitors try to influence the workers and try harder to poach the best staffs (Le
Borgne and et.al., 2021).
Income distribution and their impact on the business environment
The effect of income distribution has both positive and negative consequences over the
businesses because any changes in the spending pattern of the consumers affects their demand
and supply of products and services. An increase in income leads to increases in demand of
goods further leads to supply of goods by business and vice versa. But it is not same for all the
businesses because the companies that manufacture and produces necessary and daily use
products such as rice, wheat, milk, fresh vegetables and fruits etc. In this case, the demand of
their product even doesn’t get affected because of low spending and buying pattern of individual.
Along with that the spending of income of consumers increases on low prices as compared to
high-price items called substitute products which further leads to loss of profit to the business
deals in high-quality products at high price (Thyroff and Kilbourne, 2017).
Employment and their impact on business environment
The impact of unemployment over the business is that it provides them challenge related
to increase in the federal and state taxes. While on the other hand, unemployment also reduces
the admirative cost of the businesses because of the non-availability of jobs workers get ready to