Impact of Macro-Economic Factors & Policies on Business Management

This report provides a comprehensive analysis of the interplay between business management and macro-economic policy. It examines key economic issues such as government policies, labor market dynamics, and income distribution, and their impact on the business environment. The report further explores monetary policy, including the supply and demand for money, and fiscal policies, focusing on macro-economic effects, social security contributions, and benefits. It also elucidates the roles of primary and secondary capital markets in raising investment funds, as well as the impact of crowdfunding and cryptocurrencies. The analysis aims to provide insights into how businesses can navigate economic challenges and leverage macro-economic policies for sustainable growth. Desklib offers a wealth of similar resources to aid students in their studies.

Business Management
and Macro-Economic
Policy

Table of Contents
INTRODUCTION ..........................................................................................................................3
MAIN BODY...................................................................................................................................3
Analyse the economic issues and its impact on the business enviroment...................................3
Describe the monetary policy and supply & demand for money, its implications in various
aspects of demand for money......................................................................................................4
Describe the fiscal polices and its macro-economic effects, social security contribution and
benefits........................................................................................................................................5
Explain the role of primary and secondary market in raising money for investment.................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Business management and macro-economic policy defined as the way in that the
respective management of an organisation can be operated and developing a specific level of
understanding in consideration to the macro-economics polices of the government(Robina-
Ramírez and Human, 2020). Thus, it is the significant for the business management of an
organisation by which they can rightly understand it and then apply it in various working
patterns in an appropriate manner. Thus, manager are needed to improve the process and the
purpose of implementation which are required of changes by which the business is able to
sustain in the given market. In this respective report, direct focus is being made on analysing the
economic issues, monetary policy and supply and also the demand of money, policies.
Furthermore, a particular analysis is being made on discussion on the major role of primary and
secondary capital markets.
MAIN BODY
Analyse the economic issues and its impact on the business enviroment.
In an economy, there are multiple certain economic concerns that are needed to be
managed in an proper manner. There are certain economic concern that are linked with the
economy are illustrated below:
 Government policies: Government policies are necessary for an economy as they act as
the parameter in which the growth of the economy can be measured. Thus, it become
quite significant in which government of specific nation is able to ensure that it sets out
the right policies that will be quite helpful in managing the goals ad objectives in an
appropriate manner. When the government polices are good then this can ensure the
positive influence on the particular business environment and when the government
policies are not helpful for the government then it leads to create the negative impact on
business environment so it is vital for the government to determine its polices in an
appropriate manner(Meyer and Hassan, 2020).
 Labour market: This is also known is also called as the job market. Thus, thee are
certain forces such as demand & supply of labour. Thus, it is necessary that the
government bodies is able to make manage the influence of such forces which is
accounted. It is vital to offer the skilful and talented workers. When the government set

he right polices to the government then it helps in the proper manner so that they can
ensures the effective and positive working of the employees in the market.
 Income distribution: this is defined as the certain way in which the income is being
divided in an appropriate manner. Within the economy, there must be main focus on
managing the income distribution in such a manner by which all the section of the society
can get the sufficient income in right way. Government of the country is focusing on the
sections of the society by which they can achieve the goals and objectives in an
appropriate manner. This also helpful in managing the positive influence within the
business environment.
 Employment: This is defined as the employment that is being generated within the
economy. Thus, it is necessary for the government bodies to ensures the sufficient level
of employment is being given within the economy so that they can ensures the economic
growth and progress in an appropriate manner. Thus, this is the ways in which the
government can ensure the positive impact on the business environment.
Describe the monetary policy and supply & demand for money, its implications in various
aspects of demand for money.
Monetary policy is the policy which is adopted by the monetary authority of the country
in which they basically emphasis on the control of interest rate payable for short-term borrowing
that is often seen as the attempt in order to reduce the inflation for meeting the purpose of
maintain the general trust of the value & stability of currency of nation. There is specific level of
impact that is being put by the supply and demand forces to the money. Hence, the government
is needed to ensures the better working and specific forces are being considered in content to its
impact. Moreover, there are certain impact of various factors of demand for money such as
transactions. Monetary policy of nation is ensuring the goods aspects by which they can ensure
the positive impact on business environment(Iwuoha, 2020).
Following point will enlist the significance of monetary policy which are given below:
 Improve the economic growth: When the monetary policy is set by the national bank, it
is vital to have the appropriate policy which is leading to the economic growth of
business. Thus, government if an nation is signifiant that the monetary policy is reviewed
proper by which they can improve the economic growth rate.

 Resolving economic issues: there are various problems which are being identified by the
government and it is necessary foe the government to get out from the critical situation so
that they can ensures the stability in the economy.
There are certain types of factors which is related to the demand of money within the
market. Following are the point which are explained as follows:
 Transaction: It is defined as the level of the demand that is being analysed by the
government bodies of the country. This also includes the requirement of currency that is
needed by the individual of the nation for meeting the purpose of purchasing
commodities and services.
 Precautionary demand for money: This respective demand of money is managed by
the individual so tat they can manage the portion of money which can be sued at the time
of emergency. They are considering the specific aspects of demand of money by which
they can be able to take the major actions.
Describe the fiscal polices and its macro-economic effects, social security contribution and
benefits.
Fiscal policy is defined as the government revenue and expenditures and the huge range
of detail is being covered. Thus, it is vital that the policy must be used by the government so that
they can enhance the revenue and managed its expenditure. This also help in boost the entire
economic growth of the nation(Haq and et. al., 2020).
Taxation is the process in which the specific percentage of tax is being taken by the
government from the income of the people. This work as the main source of income for the
government which meet out all the necessary expenditure of the government. Following are the
macro-economic effects of taxation which are given below:
 Impact of decrease in the taxes: Rise in the taxation rate leads to reduce the savings of
the people and this also reduce their potential purchasing. In such way, they minimise the
demand level of business in the economy.
 Impact of increase in the taxes: Decrease in the tax rates helps in increasing the saving
of the individual and in such ways can maintain its purchasing power in order to buy the
particular goods and services in the target market.
Moreover, Social security contribution, pensions & benefits are the components of fiscal
policy and it is needed for the people to have the sufficient financial security, when they get

retire from the job. Hence, government ensures that provision is being kept so that they can
ensure the financial security.
Public expenditure deficit is the situation in which government expenditure is higher than
the revenue during the particular time period. Thus, this can be said that it is vital till the specific
percentage of GDP. This is due to showing higher government spending in the right amount of
money on society and carrying out the social expenditure in an effective approach.
Public Debt refers to the particular amount of money that is being owned by the
government of the nation and it is also necessary to manage all the debt which helps in ensuring
the economic progress in an appropriate manner. It is needed to have the sustainability of the
public debt which also influence is being created by the number of factors. In this way
government can meet its needful obligations without requiring financial assistance.
Explain the role of primary and secondary market in raising money for investment.
Capital market defined as the market in which there is the extensive dealing in the long
term debt and can be equity. Thus, there are certain people who have a need of capital and some
are investing their capital for getting the optimum amount of returns. There are to types of
market which are given below:
Primary Capital Market: it is the market in which the dealing are being made in order
to ensure the equity-based securities that are given to the investors by the issues.
Additionally, trading of equities of certain companies happens in these type of market.
Secondary Capital Market: In this, various type of investors buy & sell securities in
which they are already own. They are buying and selling which are already existing
securities in the given market place in the common platform.
Crowdfunding- this refers to the particular concept in which funding is being made and
it is necessary with the small amounts if money can be collected from the huge number of
individual. This is basically done when the large project is needed to be funded and it includes
the huge expenditure as the part of an organisation. Thus, this is vital to focuses so that funds can
be gathered as per the needs and requirement(Awadallah and Elsaid, 2020).
Cryptocurrency- This is the type of digital assets in which the investors invest the large
amount of money and they are focusing on the higher-rate of interest within the limited time
period. Further, investment in Cryptocurrency is being analysed as the risky which is considered
quite volatile. Hence the investors who wants to have the more return in short-duration of time.

This is the secure and protected theory cryptography. There are certain types of cryptocurrencies
in which consumer is investing and they are given below:
 Bitcoin (BTC)
 Ethereum (ETH)
 Litecoin (LTC)
 Bitcoin Cash (BCH)
 Bitcoin Satoshi’s Vision (BSV)
 Zcash (ZEC)
 Ethereum Classic (ETC)
 Stellar Lumen (XLM)
CONCLUSION
It is concluded from the above report that business management & macro-economic
policy defined as the approaches which is being used so that they can rightly able to do the
business in an appropriate manner. Thus, it is vital to analyse the desired actions taken from the
business so that they can sustain in the market and they ensures so that they can able to achieve
needed strategic edge over the rivals in the given marketplace. Moreover, the government of
business is required to give the consideration which influence the multiple aspects that can be
useful in managing the appropriate level of profits and achieve the certain types of long term,
short term and medium term goals in the near future.

REFERENCES
Books and Journals
Awadallah, A. A. and Elsaid, H. M., 2020. Investigating the impact of macro-economic changes
on auditors' assessments of audit risk: a field study. Journal of Applied Accounting
Research.
Haq, N. U. and et.al., 2020. Investigation the Impact of macro-economic factor on Pakistan stock
market: An analysis of pre, between & post financial crisis. Pakistan Journal of
Multidisciplinary Research. 1(2). pp.205-224.
Iwuoha, J. C., 2020. Impact of Fiscal Policy on Nigeria’s Macro-Economic
Performance. Electronic Research Journal of Social Sciences and Humanities. 2.
Meyer, D. F. and Hassan, A., 2020. An assessment of the impact of various macro-economic
variables on the manufacturing sector: The case of the Visegrád four. Journal of Eastern
European and Central Asian Research (JEECAR). 7(3). pp.351-362.
Ozdemir, O., Han, W. and Dalbor, M., 2021. Economic policy uncertainty and hotel occupancy:
the mediating effect of consumer sentiment. Journal of Hospitality and Tourism
Insights.
Robina-Ramírez, R. and Human, G., 2020. How macro level foundations influence emerging
micro entrepreneurial activities: the case of South Africa. Entrepreneurship and
Sustainability Issues. 7(4). p.3078.
ilt, C. A. and et.al., 2020. The state of business sustainability reporting in sub-Saharan Africa: an
agenda for policy and practice. Sustainability Accounting, Management and Policy
Journal.
Ahmed, S. and et.al., 2021. The Impact of Bank Specific and Macro-Economic Factors on Non-
Performing Loans in the Banking Sector: Evidence from an Emerging
Economy. Journal of Risk and Financial Management. 14(5). p.217.