BUS100 Professional Communication Skills Assessment

Added on - 08 Nov 2019

  • BUS100

    course code

  • 8


  • 2084


  • 106


  • 0


Showing pages 1 to 3 of 8 pages
1PROFESSIONAL COMMUNICATION SKILLSThe International Monetary Fund in its 2017 report has stated that the decrease in theprices is not the only affect that affects the profitability of the firm. Conditions such asrecession also have an effect on the purchasing power of the customers. If the economy isdown in a particular place, it would simply mean that the purchasing capability of the buyerswill decrease to a large extent. This would also affect the profits of the firm, as the decreasein the prices of the commodities will not help in increasing the consumption of thecommodity (Rios McConnell and Brue 2013). The relationship between the sellers and thebuyers of the commodity helps in determining the prices of the commodity, which will createan impact on the profitability of the organization. The elasticity in the prices of thecommodity helps the firms in earning better profits, as the number of units of the commoditythat will be sold will be high. The inelasticity in the price of the commodity will result in thepurchasing of the substitutes by the consumers, which would have a negative impact on theprofit of the firm.While risks are around the global growth expectation appears broadly balanced in theshort term, they remain stick to the downside over the medium term.Connor in his article inthe magazine had stated that the consumers of the product needs to have a betterunderstanding of the dynamics and the specificities that are present in the market, which willhelp in setting up of the perfect competition in the market. The article by the author helps inidentifying the impact that will be created on the customers and the businesses due to thedecrease in the prices(Varian 2014). On the other hand,Most of the customers are lookingfor a decrease in the prices in larger assets such as homes and apartments so that it can bebeneficial for the customers along with the basic necessities such as clothing and food(Finance & Development | F&D2017). Monetary policy to bring in normal state in someadvanced economies, specially the United States, can trigger a faster than expected fiscalmodel in global financial conditions. The other risks were discussed in the April 2017
2PROFESSIONAL COMMUNICATION SKILLS‘World Economic Outlook’ including a turn towards internal looking policies and politicalrisks, remain noticeable.According to the theory of microeconomics, the amount of a product in the market isknown as supply, and the amount customers want to buy is the demand. For example, acertain good, such as potato, if there is an increasing demand for French fries, but there is lesspotato, then the price eventually goes up (Varian 2014). If conditions change and there is asmaller demand for potato, for instance if everyone started avoiding French fries to stay awayfrom obesity, or the good becomes suddenly available, for example, many farms startedgrowing potatoes, then the price of the good decreases. The article ‘Supply and Demand:Why Markets Tick’, says that the relation between the price and demand of the commodity isinversely proportional to each other, as the increase in the price of certain commodities willdecrease its demand in the market place. The use of the rational model of expectation is animportant part of the business, as it is related to the oversimplification of the businessprocesses. The increase in the prices of the commodity will not always mean the decrease inthe demand of the commodity, as the quality of the product also needs to be tested. Thesedynamics need to be seen by the business so that it can be successful in the market place(Anon 2017). After the economic revolution, the expectations of the people with the variablesin economy have helped in influencing the behaviors that are related to purchasing. The dropin the prices of the commodity helps in increasing the demand of that particular product. Theconsumers of different economic backgrounds will be able to satisfy their needs bypurchasing the commodity at an affordable price.Prices can vary for many reasons like, technology, preferences of consumer, weatherconditions. The relationship between the supply and demand for a product or service andchanges in price is known aselasticity (Balk 2013). Products that are non-elastic are
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