Question

In: Economics

Choose a global company and a single market in which it operates. Discuss the factors that...

  • Choose a global company and a single market in which it operates.
  • Discuss the factors that constitute the economic environment of this type of business.
  • Explain why it is important to understand when markets are at different stages of economic development.
  • Explain how the World Bank’s four-category classification system, which measures gross national income (GNI), adds value to an organization.

Solutions

Expert Solution

. A global company that I am choosing for this question is an online money transfer company and it is operating on a global platform to transfer the money so here the market is a financial transaction market which transfers money from anywhere in the world.
Following are the important factors that constitute the economic environment of this type of business.
The policies and the financial rules of different countries must be considered while making a decision to pursue the financial services in different financial platforms of the world. These are the mean economic environment factors which can affect the working of the company.
Another important economic environment factor is the working collaboration with the financial institutes and the banks because all types of financial services are provided by the commercial banks in the countries.
Next important factor related to the economic environment is the level of the financial charges which can apply and these charges are important because these charges decide the revenue of the company.
It is important to understand the markets which are in different stages of economic development because the financial services and the financial market is a matter of change according to the demand and supply forces in the economy, therefore, the financial charges charged by the different banks in different countries also play an important and considerable factor in the determination of the financial services.
The World Bank four-category value system considered economic growth, inflation, exchange rates and population affected the business and adds value to an organisation because if you consider the ground policies of any country then it is quite easy for you to maintain a positive relationship to appraise the economic growth in the organisation.


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