StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...
Free

Applying Business Concepts to Current Events - Essay Example

Cite this document
Summary
Section # 1: The article which has been selected is: ‘Is gold worth investing in at its current high prices’ by economic times’ (ET, 2012) This article illustrates basic economic concept of demand and supply with price factor. It explains how price of a product is determined by the demand…
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER95.1% of users find it useful
Applying Business Concepts to Current Events
Read Text Preview

Extract of sample "Applying Business Concepts to Current Events"

Section The article which has been selected is: ‘Is gold worth investing in at its current high prices’ by economic times’ (ET, This article illustrates basic economic concept of demand and supply with price factor. It explains how price of a product is determined by the demand. Increase in demand with limited supply leads to increase in price. Increase in price leads to decline in demand again to decline in demand with constant supply. In case the supply eased, price of the product is also eased.

This article illustrates demand and supply concept with reference to Indian economy. Where rise in demand of gold led to increase in price. This rise in demand for gold had underlying factor of weakening Indian economy (Indian Express). Local demand for gold declined due to price. But increased parity of Indian and US currency led rise in gold demand in India where international investors jumped in to take benefit of this parity and invested in gold in India. It also explained the reason of rise in price in international market.

This rise in price was due to the limited global supply of gold and increasing demand. From the article it can also be concluded that the demand is due to declining opportunities (substitutes) to invest. Hence, demand in gold is due to substitute effect it is has over other investment options (ET). Demand and supply relation was also evident from the availability (supply) of investment options. Since due to worsening global conditions in economic terms and rising concerns over sovereign debt crisis in Europe reduced the available safe investment options like Euro, dollar etc , demand for gold rose.

This demand for gold was also characterized by the benefits it offer to investors in terms of being safety and less risky than other investment options. Therefore, price of gold rose due to increase demand of benefits gold offer as well as limited supply of gold. It helps understanding how the demand for a particular product can rise due to various reasons. This rise in demand can be solely for the rise in demand for the benefits particular product offers as well decline in demand of substitute products.

It also explained the reason of rise in price with respect to demand. Impact of supply that determines the price at particular demand level is also evident from the articles. Section # 2: The article which has been selected is: ‘UK recession deepens after 0.7% fall in GDP’ (BBC, 2012) This article highlights the concept of business cycle as it illustrates the recessionary state of economy which is a constituting component of business cycles. Global economy is currently facing recession. State of economy is measured by total output produced by an economy in terms of gross domestic product, commonly known as GDP.

Decline in GDP is due to decline in overall demand from the economy. The declining demand leads to less production required, takes investment down, leads to less labor required and leaving people unemployed. Unemployed people do not have money to buy things which further reduces demand and overall condition worsens. In business cycle, against this state of economy is recovery where all steps move in opposite direction. This article sheds light about the factors which led to deepened state of recession in UK economy where GDP fell by 0.

7% between April and June 2012 (BBC). This article points to the factors that turned the economy fragile and increasingly vulnerable to deteriorating situation, to mention, euro-zone crises and reduced construction level being the leading factors. It also referred how countries invest in infrastructure to boost the economy back on track of growth for recovery. As mentioned in article, slowed down construction activities had an added effect on the declining GDP. Government increased construction to push the economy up.

Another measure that is applied to reduce impact of recession is to lend to private sector at lower interest rates. This measure results in reduced cost of production which ultimately reduces the price of products and enables people to buy with less purchasing power. Impact of this was seen in Olympic investment as short term boost to economy. The article puts emphasis that short term measures like Olympic are not enough to provide required push and the movement across growth on business cycle is requires consistent efforts.

This article help in understanding the recession phase of economic cycle. It also explains the impact over economic growth trend based on happenings around the world. Positive economic happenings drive the economy towards recovery whereas negative happenings pose speed breakers in its growth path. It also identifies the importance of public investment and multiplying positive impact from construction sector that takes multiple industries on run along with it. It implies that recessionary phase of business cycle is very tough and it requires persistent efforts to regain the growth momentum.

Works Cited BBC. UK recession deepens after 0.7% fall in GDP. BBC News. Jul. 2012. 3 Oct. 2012. ET. Is gold worth investing in at its current high prices? The Economic Times. Jun. 2012. 3 Oct. 2012. Indian Express. Rising price of gold could mean falling current account deficit. The Indian Express. Aug. 2012. 3 Oct. 2012.

Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Applying Business Concepts to Current Events Essay”, n.d.)
Retrieved from https://studentshare.org/business/1458165-applying-business-concepts-to-current-events
(Applying Business Concepts to Current Events Essay)
https://studentshare.org/business/1458165-applying-business-concepts-to-current-events.
“Applying Business Concepts to Current Events Essay”, n.d. https://studentshare.org/business/1458165-applying-business-concepts-to-current-events.
  • Cited: 0 times

CHECK THESE SAMPLES OF Applying Business Concepts to Current Events

Compare and Contrast Various Research Concepts

Research is thus vital to an organization to get access in to right information, on right time and about right events in right ways.... Basic and Applied research: Compared and Contrasted A manager or researcher may undertake the research to solve a current problem that he currently faces in his organization.... Applied research is thus one that attempts to find solution to a current problem faced by the organization (Sekaran, 2003, p.... BUSINESS RESEARCH METHODS Compare and Contrast Various Research concepts Your name …………………....
12 Pages (3000 words) Research Paper

Evaluation of Events Management

events Management Introduction Recent times have seen events turn into popular vehicles for regeneration of the urban areas and for economic growth and development as well as playing a massive role in reflecting the extensive changes that have taken place in culture and the society (Raj, Walters and Rashid, 2008).... hellip; As a result, the events industry has emerged and grown so large leading to some suggestions that the events management field should become a discipline of its own (Smith, 2012)....
10 Pages (2500 words) Essay

Developed Musical Event in Albert Park

One of the most challenging tasks for the people that organize these events is to arrange the appropriate distribution of resources available (for the realization of the relevant project) referring to supply chain management for all the stages of a particular musical event.... Focusing on the necessity of supply chain management in modern business activities, Krishnan et al....
14 Pages (3500 words) Case Study

Practical Lessons in Applying Accounting Standards

The author discusses fundamental concepts that would prepare learners for the real world of accounting practice.... lthough “Practical Lessons in Applying Accounting Standards” targets accountants who are already engaged in the accounting field, it is also helpful to those pursuing careers in accounting and business-related fields.... This paper, Practical Lessons in applying Accounting Standards, declares that one of the reasons why most writers have not been able to capture their reader's interest is due to their lack of correct use of rhetorical analysis....
7 Pages (1750 words) Essay

The Management of Business Logistics

However, in recent times, with the materialization of effective supply chain and network distribution concepts, integration of Logistics with supply chain systems has surfaced the scene.... The aim of the paper "The Management of business Logistics" is to identify the four critical factors for the success of the maritime logistics sector in terms of business methods and novel technology methods and practices that play an important part in enhancing the performance of the sector....
17 Pages (4250 words) Research Paper

Sustainable Event Management

Thus, policies, which promote the preservation of resources, improve the environment, and reduce the negative impacts of highly resource intensive events on the economy, are implemented when planning for sustainable events.... The specific events business that this report aims to analyze is the London Olympics 2012, which was organized by the International Olympics Committee....
10 Pages (2500 words) Article

Typology of Events and Entertainment in Manchester City

The present study “Typology of events and Entertainment in Manchester City” aims to provide a detailed report on the basis of personal experiences of attending literary festivals, sports events and musical concerts in various areas of Manchester city, UK....
16 Pages (4000 words) Research Paper

Conference and Events Planning

This coursework "Conference and events Planning" examines the process of events and conference planning, focusing on the role of meeting architects in creating successful event programs.... hellip; It is important to understand that the events and meeting industry is quite young and full of opportunities especially for companies joining the industry to offer event planning and organization services.... Set objectives in the most effective way; for this reason, besides organizational events planners, the need to have a person or entity that can guide the organization towards effective event, meeting and conference planningThe planning and coordination process for the particular event is often called event planning and often includes scheduling, budgeting, getting the necessary tools and equipment, scheduling among other important plans (Berridge 2007, p, 55)....
10 Pages (2500 words) Coursework
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Contact Us