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Financial and Economic Literacy for Managers Introduction

   

Added on  2020-01-21

11 Pages2186 Words341 Views
Financial andEconomic Literacy forManagers1

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INTRODUCTIONFinancial and economic literacy is significant for learning planning and decision makingtools for proper management of business operations. In this regard, different monetarycomponents and ideas are generated for better quality services of organization. The presentreport is based on understanding concept of globalization affects on consumer and firms.Including this, comparison and contrast between economic- diseconomic scale as well substituteand complementary goods are to be described. In addition to this, financial statements andvarious concepts related to decision making for improving economic position of entity is topresented through this assignment.QUESTION 1a) Globalization impact on consumer and firmsGlobalization is an approach that is allows international integration within countries ofthe world. In accordance to this, export and import among countries get improved that affects onbusiness organization's efficiencies. However, it encourages production and distribution of goodsas well services among nations worldwide. In addition to this, it affects consumers and differentfirms as well several sectors for economic stability and developing country's standard regardingbusiness activities. Moreover, it is able for adequate fund and resource allocation throughsupporting other business trades internationally (Beck, 2015). In accordance to this, expansion oforganization is obtained same its goodwill get impacted efficiently. Therefore, countriesdevelopment in economic and non-monetary terms are presented through this concept. On thecontrary to this, globalization also impacts negatively due to expensiveness and differences inlegal rules and regulations among different nations that affects social, technological and differentenvironmental factors. Thus, it is needed for organization's decision makers to prepare planningon behalf of globalization for international business effectively. b) Demand curveThe quantity demanded is less than lower prices at the higher price. A demand curveindicates the inverse relationship between the quantity demanded and the price of products.There are usually a negative gradient that indicates the inverse relationship between the price andthe quantity demanded. 3

There are explanations that are accepted for why the demand curves for slopingdownwards: 1.the demand curve can possibly explain the law of diminishing marginal utility2.the income effect can also be exhibited with the use of demand curves3.demand curves are also used to depict the substitution effect. The demand graph is a graphical representation where the price is usually appeared onthe vertical axis on the left side, and the quantity demanded on the horizontal axis. The demandcurve appears to move downwards from the left to right, that could express the law of demand:as the commodity's price is increased, the quantity demanded increases, when all other aspectsbeing equal. c) Comparison and contrast economics and diseconomies of scaleThe economies and dis-economies are not separated from each other. The two conceptsare have change in their costs while they goes in the level of output.4

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