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Akansha answered on
May 17 2020
Importance of The Business Systems to the Country’s Economics
Running Head: the importance of the business system
1
Importance of The Business Systems to the Country’s Economics
UNIVERSITY NAME:
STUDENT NAME:
DATE:
Contents
INTRODUCTION 1
BUSINESS SYSTEM 1
KEY CONCERNS 2
DIVERSITY OF BUSINESS AND ORGANISATIONAL PATTERN 4
BUSINESS SYSTEMS 7
NATURE OF BUSINESS SYSTEMS 8
GLOBALIZATION AND CONVERGENCE 10
IMPACT OF GLOBALIZATION 12
CHINESE FAMILY BUSINESS 16
LEARNING POINTS 18
NATURE OF ECONOMIC AGENTS, MARKET OPTIMIZATION, LABOR COORDINATION 20
CONCLUSION 21
REFERENCES: 23
INTRODUCTION
The nation's business system defines the country's direction towards acknowledging success in the world economy by making a sustainable place. The significant aspect that the business system plays for a country is to develop the economy of the country. The nation's economic development directly impacts the country's population. This is the reason the countries encourage business systems to attain job opportunities, economic development, and other factors associated with it.
The first part of the given essay will discuss the key concern related to the business systems and its relation to the country's factors. Like how the business system is associated with the residents of the country and the economic growth gained by them?
Secondly, the diversity of the businesses and the organizational patterns will be discussed. With the increasing globalization, the diversity is becoming an important factor to be focused when developing a business system. The diversity affects the organizational structure and the work practices of a company; it becomes all the more important to understand the concept better. This will help the businesses aiming to cross national borders and understanding the concept of working with the businesses entering the national borders and trying to develop the market for their product and services. Specific examples will also be enclosed in the essay to develop the understanding better.
BUSINESS SYSTEM
Business system of country economics refers to the administration of a country towards the economy worldwide. It uses to examining that how a specific nation acknowledges to negating the environmental economy. There can be many core factors which make a country to grow and develop, i.e. technology issues, business system and political issues. The economic development of any country is known as a mechanism through which a nation promotes the political, economic, and social well-being of its citizen. It can also define as the augmentation of the economic wealth of the nation. The economic development is directly related to the citizen of the country which impacts their lifestyle and well-being as they get the ultimate benefit when there is a growth in the economy in their nation. The citizen of the country has been affected both positively and negatively if the economic development of their country develops or lowers.
The business systems do necessarily associated with the economic growth mostly which influence or affect the living pattern and lifestyle of people in that country positively. The economic development related to the increment in the national wealth which directly or indirectly associated with the increase in the wealth of the citizen of that country. The development of the economy is a summation of the individual wealth which resulted in the massive increase in the economic wealth. It can also be concluded as the increase in the per capita income of every citizen which increases the wealth of the economy as a whole. When a particular nation encompasses development of the economy, it discovers and generates many opportunities in various sectors such as healthcare, education, employment and preservation of the su
oundings.
KEY CONCERNS
The business systems that to be scrutinizing are directly or indirectly related to the economic growth of the nation. The economic growth is defined as the increase in the prices of the products and services produced by an economy over the time. It is mostly measured as the increase in the gross domestic product of a nation which is associated with the increase in the per capita income of a citizen. The economic growth is defined as the increase in the human capital and enhancement in the productivity of goods and services from innovative and creative new technologies (Tilt).
Is economic growth is related to the citizen of that country? An economic depression and recession could appear when the economic growth and development of a nation lower or goes negatively. When such type of circumstances appeared, the rate of unemployment increases and per capita income of citizen also be tremendous goes down. If the fall in the economic growth continues like this, many people may be declared as bankrupt. The unfavorable situation is that the shattered
eakdown of the economy is known as economic fall or
eakdown (Hannerz).
During the downturn in the economy, the citizens of that nation become more unimaginative. This situation does not only affect the real estate industry but also influence the issue regarding unemployment as there will be lesser demand in the real estate market. In addition to that, with the economic stagnation, the rate of unemployment decreases which resulted in no money so that people will avoid investing as they need money for their survival which is important than anything. This will result in drastic fall in the market supply. This continuous situation will hamper the other sectors too like the bank will not be supposed to give money to the people as they know that people do not have enough money with them to return it on time due to economic stagnation. The bank will accordingly charge the higher rate of interest which lowers the chances of the bo
ower to repay the amount of loan with the stipulated rate of interest. Due to the unemployment, people have less money or no money with them to even survive their family so; it is challenging for the banks to lend the money to such person. During the fall back in the economy, banks play a crucial role as they have the opportunity to lend the loan as per their requirements which directly or indirectly affects the economic development and growth. People in business needed the huge funds for the smooth flow of cash in their respective business, for aiding such issues, the credit facility is not optimum to overcome such problems. For such circumstances, the provision to qualify for getting a loan would be increased accordingly. In case, when the businessmen are not able to comply with the norms considered by the banks, they will join the sunset team (Moshirian).
The disassociation between the bank and people is the reality-based situation for which only banks cannot be blamed as they are protecting their advantages which fundamentally co
ect. So, it is the responsibility of the nation to a
ange the funds for the rescue plan to support the corporate citizen of the people which lead to benefit the economy as a whole. The government must pre-plan or frame such type of rescue plan earlier to cope with the real situation like recession and downturn of the economy.
DIVERSITY OF BUSINESS AND ORGANISATIONAL PATTERN
Every person is distinctive and has a different way to think standard of lifestyle and living pattern. This is the fact of the reason that why different roles needed for each people in the family, organization and society. The perception of diversity requires the respect and acceptance which mean to follow that each is different and have a unique style of living their life. The diversity can be expressed with the magnitude of cultural background, ethnicity, race, socio-economic status, physical abilities, political beliefs, sexual orientation, age, gender and other social terminologies. These approaches and differences help us to the positive, safe and nurturing environment. The diversity is all about understanding the individual perception where moving beyond the level of tolerance to cele
ate the individual differences with the respect and acceptance. It is very significant for any organization to accept that every individual has unique perspective and imagination which may help them to attain massive profitability and productivity (Hannerz).
It is impossible for any organization to establish itself at the international level without accepting the diverse people from that country. Culture diversity enables any organization to reach easily at the international platform. The organization may provide enough training and sessions to the new and existing employees to let them understand the diverse culture and help them to get the knowledge of various cultures so that the employees can easily work with the people from different background, races, identity, sexuality, color, religion, sense of dressing and religion. While considering these facts, any organization can easily work on an international level with multi-culture people.
Cross-cultural teams and multi-nationals have become more corporate businesses which can be benefited from the new approaches and diverse knowledge regarding the culture, languages sensitiveness. While conducting business at an international level, it is very important to understand the importance of diverse culture because the business will be supposed to face the team from different backgrounds. For any organization, it is not possible to work without the people from different background. Understanding and recognizing the culture are very important for the international level business to survive in the market. The organization must understand the importance of getting the work done by the individuals from a different background.
While cu
ing the unique individual spaces creates a positive environment in which every individual feels respected, loved and valued, and their skills are completely utilized to achieve the desired organization goal. It is the same magnitude of the business and organization to preserve and continue in the industry and society. Today, in the increasing competition, it is very essential to accept the diversity to have multiple opinions and ideas from different people based on a different background to attain maximum success. The diverse individual gives multiple ideas to solve difficult problems (Dr R. Hemanalini).
The tendency of increasing individual differences and business trends of globalization has focused the attention to the harnessing of the differences. Today, the organization has understood that the working with the diverse people will increase the morale and dedication of employees which resulted in self-development and organizational growth. People from different background have a unique way of interpreting their views and perception; people can
ing up different and fresh ideas that will enhance the organizational work more efficient and make the products and services going better.
A human being is very different in many ways. They have differed in age, sexuality, ethnicity, gender, opinions, class and religion. Today, there is no place in the world where people from one religion lives. Today, millions of people are migrating from one place to another to search for the job to earn their living, or better opportunities and lifestyle then they have. In the world of cultural diversity, people left with no choice to em
ace and cele
ate the cultural diversity on both professional and personal front. In the world of diversity, entrepreneurs have the advantage to cover more geographical areas or to reach new markets. Nowadays, every company wants to set up their business worldwide which need to set up their offices in different countries that cannot be possible without accepting and em
acing diversity. It creates the greater employment opportunities to a large number of people around the world (Madra).
Largely, to em
ace the cultural diversity, it needs various resources in the long run, and an organization went through a level of transformation and adaption while walking through a technological change. The issue of differences attracts the attention of organizations due to the reason that diversity would help them to nurture innovation and creativity which will help to identify the hidden capability of an individual for the competitive advantage to the accomplishment of organizational desired goals (Moshirian).
BUSINESS SYSTEMS
What business systems are as defined by whitely?
The introduction of the Whitley model has resulted in a mass of publications by using the concept of the business system. The concept ranges from the dedication of the business system of a country to use the model in detailing the issues in the production technology transfer and human resource management systems. In the foreign direct investment. Whitley model administers researchers with the well-defined set of norms to analyze the nation’s business systems and thus more precisely find out the particular management practices, and technological changes are the profit of a particular business system and to explain how their accomplishment in another business can result into many problems.
The business system concept is launched by well-renowned researcher Whitley who is center around the belief that organization do not interpret like social destitution, but the environmental changes affect the economic factors effectively. Different business sectors or the various firms who operate in different markets have to follow the all rules and regulations, etc. Various factors are linked to...