Business Administration Assignment: Economic Analysis and Policies

This business administration assignment provides a comprehensive analysis of various economic concepts and their practical applications. Section one explores the impact of international trade on consumer choices, defines market structures with an emphasis on online retailing, examines the implications of unemployment rates, and analyzes negative externalities, such as noise pollution. It also delves into the effects of public sector investment, low-interest rates, and government subsidies on economic growth and consumer welfare. Section two addresses macroeconomic issues like inflation and discusses factors influencing birth rates, including religion, education, and government policies. The assignment also critically assesses the benefits and challenges of international agreements, particularly for developing countries, and discusses the importance of investor trust and the need for effective management of resources and agreements to foster sustainable economic development. The assignment is supported by references to relevant literature and economic principles.

BUSINESS ASSIGNMENT 1
BUSINESS ADMINISTRATION
Student Name
Institutional Affiliation
Facilitator
Course
Date

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)

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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

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of borrowing. This leads to an increase in the output and production in their businesses (Cúrdia
et al, 2011, p.75).
g)
When a government gives subsidies to fruits producers, consumers benefit from quality fruits as
many producers have the capability of producing fruits and the competition causes them to desire
to produce quality fruits which attract customers. Subsidies still encourage production and this
reduces monopoly of production and consumers benefit from it because some effects of a
monopoly such as price discrimination are excluded. Consumers still can benefit from the
government offering subsidies to producers by accessing fruits efficiently and conveniently. This
is because producers are able to produce a variety of fruit conveniently and consumers can
readily access them at times of need (Stevens, 2010).
SECTION TWO
PART A
1)
It is the imperceptible overall increase in the consumer price index of goods and services over
time resulting in increased cost of living and fall of money value (Ball, 2017). It is a gradual
process caused by an increase in money supply, high national debt and the demand-pull effect in
an economic system. It is a macroeconomic issue.
2)
Religion: Some religions such as the Catholics prohibit the use of contraceptives resulting in
high birth rates. While others claim that it is a command to give birth and fill the earth.

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Education and employment of women: Most learned and economically stable women have no
desire for many children as others even opt celibacy, unlike the illiterate, poor and less
knowledgeable ones who give birth to many children.
Government policies: Some governments encourage people to have many children probably for
labor provision and future sustainability of the country. Others may discourage this due to the
increased economy.
Technological advancement: There are new methods of fertility reduction and other birth control
methods such as family planning and the use of contraceptives (Repetto, 2013).
3)
Low school leaving age will probably make education quality better as the focus is shifted to
children to finish at an early age. This makes a big difference later as there is more time for the
individual to reap the fruits of their work through working from an earlier age and hence a better
future plan. However, it is also threatening the social development of the individual. They still
need absent guidance from teachers and parents when they leave school at an earlier age. In
cases of lack of job opportunities, become a threat to the public security and country economy
through crimes. Parents feel the effect on their children especially when it falls on the negative
(Black, Devereux and Salvanes 2011, p.460).
PART B
4)

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There is no rigid assurance that the agreement will be totally beneficial to it due to lack of a
binding law on such a case and the pessimistic thought of how other countries, organizations or
firms will take if the deal fails without it. They are not sure of being compensated if at all a
difference between them and the developing country occurs and they are cut off yet they will
have spent a lot to invest. In addition, the developing country is economically desperate and they
will need to invest in a lot in the mine using their own resources. There is also the question of
how trustworthy the developing country will be in the benefits share with its low economic value
and probably the people in desperate need of money in the dynamic world of growth and new
generations hence leadership. Finally, there is also the big question as to why the developing
country hasn’t found other investors for the same, or what might be the reason yet they are so
many of them?
5)
There seems to be missing a very important part of the law to bind agreements between countries
and external investors that discourages many investors either first timers or some who have had a
disappointment before.
There is a big problem with the developing countries that are economically desperate and they
lack proper use of the human capital in knowledge, skills, and intellect to utilize their own local
resources. These countries also have very alarming cases of financial misutilization through
corruption and other vices hence a public mistrust to their neighbors. This loses the hope of
many investors who fear that they will lose the deal with irreversible losses.
As much as the developing countries need help, something is really not right with the
management of investment needs and the multilateral agreements with other countries and

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external partners. This may not necessarily make investors help but something can still be done
with proper tuning of minds and becoming intentional in this matter. It may very hard to deal
with but very possible.

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References
Ball, R.J., 2017. Inflation and the Theory of Money.Routledge.
Black, S.E., Devereux, P.J. and Salvanes, K.G., 2011. Too young to leave the nest?The effects of
school starting age.The Review of Economics and Statistics, 93(2), pp.455-467.
Cúrdia, V., Ferrero, A., Ng, G.C. and Tambalotti, A., 2015. Has US monetary policy tracked the
efficient interest rate?.Journal of Monetary Economics, 70, pp.72-83.
Giulietti, C., Guzi, M., Kahanec, M. and Zimmermann, K.F., 2013. Unemployment benefits and
immigration: evidence from the EU. International Journal of Manpower, 34(1), pp.24-38
Repetto, R., 2013. Economic equality and fertility in developing countries.RFF Press.
Stevens, C., 2010, February.Linking sustainable consumption and production: the government
role.In Natural resources forum (Vol. 34, No. 1, pp. 16-23). Oxford, UK: Blackwell Publishing
Ltd.
Xing, Y., Grant, D.B., McKinnon, A.C. and Fernie, J., 2011. The interface between retailers and
logistics service providers in the online market.European Journal of Marketing, 45(3), pp.334-
357.