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In a day to day life the roles of economics plays a crucial role because most of the activities within the household are done based on the economical consideration. Buying things from online and offline platforms and spending a certain budget all falls under the economical factors. This code is associated with the fundamentals of economics where different factors, principles related to economics will be taken into consideration. In addition to that this module will let the participants and students about the understanding of broad concept related to economics will also be taken care of. Economical consideration can work in different way and they way of working and incorporation of economics in different field will be stated in the entire module. The ECN601 task answers is associated with Grand Canyon University which is situated in Arizona and participant from commerce and finance background can enrol them to avail different benefits and consideration related to the economical consideration.
Study level:- Under-graduate Level
Unit code:- ECN601
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In terms of business, the fundamentals of economics are considered as the revenue, profitability, assets, growth potential and liabilities of the organization. Based on different fundamental analysis an organization can calculate and ensure about the financial ratio of the organization to have better idea about the process of investment. The growth trade balance, the interest rates, GDP and many more other consideration impact on the national values. There are two types of economical consideration that an organization can have such as Microeconomic and Macroeconomic fundamental where macroeconomics means the external economical factors that impact on the business environment such as growth, demand and supply, inflation, unemployment and other sort of statistics. An example can be effective to understand the key consideration such as if an organization wants to incorporate them in other countries or foreign markets then they have to consider the economical growth of that country. If they found that the country is economically developed then they can have more revenue by providing premium prices to that products because the people within the developed countries are capable enough to buy premium prices. The more the inflation rate within a country, the more organization can have growth in terms of revenue because the more there will be increasing rate of prices the more companies can increase their sales and that is how they can be economically developed within the business environment. In addition to that another economical consideration is the rate of interest. While an organization tries to import and export products and services, they use to be dependent on the tax rates of those particular countries and the high tax rate can reduce the business profit and low tax rate can save the operating costs.
On the other hand, there are microeconomic fundamental which focuses on the activities within the sector or market. Based on the demand and supply of consumers and labourers economical budget can be set by an organization such as if there is much more availability of labour within a market then with a low payment companies can hire much more labourers and due to high competition the demand of the labourers will be low. Similarly, if organizations within a market found to have less skilled and talented workforce then the demand of labour will be high and for that organization have to bear much more labour cost which might impact on the economical budget for that particular organization. Based on the behaviour of the consumers an organization can understand about how people can spend within their set budget. Let for example few people love to spend a certain percentage from their incomes whereas most of the income of some people goes for household utilization. The more an individual will be open handed, the more it becomes easier for the organization to increase their sales in the market. In addition to that there are key consideration related to economical fundamental such as cost control where based on the needs and demands organization uses their financial power and control in such a way so that there will be less waster in the process of investment. In order to have proper control the financial managers or advisors in big business companies use to analysis the needs and requirements and based on previous data and nature they ensure about how to utilized the economical budget so that there will be effectiveness in business management.
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Understanding the risks related to economical management is also needs to take into consideration to have minimal waste from the budget and business efficiency can be maintained. In addition to that there are other fundamentals related to economics are such as the debt to equity ratio which measures about how a company is financing its operation and that depends company to company. Along with that the quick ratio is another factor which measures the ability of the organization to meet their short terms obligation. The price to earnings is another economical consideration which ECN601 assessment answers helps in comparing the investment of an organization with the earning in dollar. If an organization found that they are earning less compared to investment then they are facing loss in the business environment. Along with that the degree of financial leverage is another consideration which ECN601 assignment answers helps in measuring the ability of the earning per share.
Finding the fundamentals of economics should be carried out with such a manner so that by utilizing different ratios and bottom up approach a top down analysis can come into actions and conclusion. This module has discussed about different key fundamentals and considerations related to economics in business and personal environment. In each and every aspects there is a role of economics and based on different factors the economical consideration has been taken care of by the business organization in both internal and external and in domestic and international business environment.
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