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Knowledge on Economics, How it Will Help Your Business

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Knowledge on economics is significant in our daily lives. Albeit the same will not teach us the formula on how to become rich, however it can explain why an entrepreneur and his enterprise became successful. Also it can provide explanations why there are number of businesses in the country accustom to bankruptcy.

For example, foreign investors are likely to invest in one country having a higher percentage of Gross Domestic Product (GDP). Even local businessmen will likely to invest or establish an enterprise in one place of a locality only if they found out based on economic data that there are increase in domestic consumptions thereof. Increase in consumption is an implication that the people residing in that locality have an income to buy for their needs and wants. If they have an income then economically they have their source of income. Their source of income could be out from their employment. Or it could be that they have their own small enterprise. If these could be the situation then there are business opportunities.

Through the study of economics, one could figure out why the prices of oil and petroleum fluctuates from time to time; why banks’ and other financial institutions’ offer are related; and why increase in interest rates are associated with the inflation. Knowledge on economics can answer these situations and can explain the surrounding circumstances affecting the environment.

Truly, knowledge on economics are vital in business. Decisions made by businessmen or entrepreneurs should base significantly on economic activities, domestic and international, in order to arrive in the increase of their revenues or expand their business in other areas. The management of the company who can understand the cause and effect of economic growth can make right decisions on problems, issues and matters affecting the business operations.

For customers, knowledge in economics are helpful in deciding what products to buy for the household base on the adopted standards and quality. Moreover, it can help them become aware on their responsibilities and rights as customers. Hence, they can rightfully react if ever there are overpricing of products and services in the market.

Part of the success of business is to be guided by the economic theories and principles, including the foregoing, among others.

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Why Study Economics?

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Economics is a social science discipline which deals with the efficient allocation of scarce resources to satisfy the unlimited wants and needs of man. It originated from the Greek word ‘oikonomos’ or ‘oikonomia’ which means management of the household.

The study of economics is incorporated in the curriculum of several baccalaureate courses in college. It also form part of the academic studies among students taking up undergraduate degree or courses in a particular learning institution.

But many try to dissuade in studying and mastering the discipline of economics. One of the reason they cited appurtenant thereto is that the study of which requires a lot of updated reading and learning since it delves on vital current problems.

In addition, the study of economics involved on theoretical structures, models and scientific method consisting of technicalities which may difficult to comprehend. Thus, vigorous study is inevitable in order to have a complete understanding on this subject matter.

Also, the study of economics deals with quantitative computations which employ algebra, geometry and calculus.

Moreover, economics associates abstract thinking and theory. As such, it has a narrow focus discipline having stifling terms.

Besides, economic reasoning mostly deals on issues and decisions based on quantified terms and measurements which may not be what the society wants in general.

Notwithstanding the foregoing, there are still who major the field of economics. For them, its study is a requirement on their vocations and its knowledge is vital on their preparation for the study of law, politics, social sciences, business, government, among others.

Additionally, graduates of economic courses get better jobs and better pay due to their technical competencies they develop like calculations, analysis, interpretation, abstract and critical thinking, establishing relationships among events, research, project proposals and feasibility studies. They usually find far rewarding jobs and careers.

But why study economics? The reasons could be manifold and subjective.

For an intrinsic part in our everyday living, we do apply economics. It is so basic and evident in our everyday life.

Economics help you understand the market place. Also, it will help you to understand the economic system in general. Learning on these could help us a lot in making day-to-day decisions. The fact that all people are consumer who lived in a society, they must therefore be guided on their actions.

In addition, the study of economics helps you to understand the economic and political events both domestic and international. Hence your decisions of spending, saving, and even borrowing become more effective.

Moreover, understanding on economics allows you to understand the signals from the marketplace, the nature of the cost or price of the products, and the process of making decisions especially those with quantified values.

Likewise, economics interacts with almost all other academic disciplines. By this, it allows you to better understand how the world and its people function and behave.

Economics intimately intertwined with current events. It has a profound impact on political events thereby allowing you to fully appreciate in the policies of running the economy by the government.