Macroeconomic Variables Affecting a Business Environment
CHAPTER 1
QUESTION: IDENTIFY AND EXPLAIN TEN (10) MACROECONOMIC VARIABLES AFFECTING A NAMED BUSINESS ENVIRONMENT.
HOW CAN THESE BE REGULATED?
INTRODUCTION
In today's world, no business operates in isolation without interacting with the environment where it operates. Irrespective of the nature of business whether public or private organization; manufacturing; service industry; local or international firm, its operations are inhibited by the environment in which it operates.
During 2003-2007, Nigeria attempted to implement an Economic Empowerment Development Strategy (NEEDS). The purpose of NEEDS is to raise the country’s standard of living through a variety of reforms, including macroeconomic stability, deregulation, liberalization, privatization, transparency and accountability (Gbadebo, 2008).
The popular view regarding the role of the financial sector, especially in a developing economy derives from its primary function of mobilizing financial resources from the savers and directing these resources into channels of desired development activities.
Attention has been drawn to the relationship between real and financial developments in terms of the role of financial intermediation, monetization and capital formation in determining the path and pace of economic development. The linkage between financial sector development and real sector performance is through the mobilization of financial resources and the delivery of these resources to the investing public.
Obviously if monetary policy is out of fume with the imperatives of the predominant channel of linkage between the financial sector and the rest of the economy, it is possible for the financial sector to become obstructive to economic growth and development.
Definition of terms
Precisely, in identifying and explaining macroeconomic variables affecting a named business environment like financial institutions; it will not be out of place to define the following terms;
• Macroeconomics •
QUESTION: IDENTIFY AND EXPLAIN TEN (10) MACROECONOMIC VARIABLES AFFECTING A NAMED BUSINESS ENVIRONMENT.
HOW CAN THESE BE REGULATED?
INTRODUCTION
In today's world, no business operates in isolation without interacting with the environment where it operates. Irrespective of the nature of business whether public or private organization; manufacturing; service industry; local or international firm, its operations are inhibited by the environment in which it operates.
During 2003-2007, Nigeria attempted to implement an Economic Empowerment Development Strategy (NEEDS). The purpose of NEEDS is to raise the country’s standard of living through a variety of reforms, including macroeconomic stability, deregulation, liberalization, privatization, transparency and accountability (Gbadebo, 2008).
The popular view regarding the role of the financial sector, especially in a developing economy derives from its primary function of mobilizing financial resources from the savers and directing these resources into channels of desired development activities.
Attention has been drawn to the relationship between real and financial developments in terms of the role of financial intermediation, monetization and capital formation in determining the path and pace of economic development. The linkage between financial sector development and real sector performance is through the mobilization of financial resources and the delivery of these resources to the investing public.
Obviously if monetary policy is out of fume with the imperatives of the predominant channel of linkage between the financial sector and the rest of the economy, it is possible for the financial sector to become obstructive to economic growth and development.
Definition of terms
Precisely, in identifying and explaining macroeconomic variables affecting a named business environment like financial institutions; it will not be out of place to define the following terms;
• Macroeconomics •