Difa Febymarini
041993449
25/02/1999
ADBI 4201 Bhs Inggris Niaga
83 / S1 Akuntansi
23 / KOTA BOGOR
Minggu 20 Desember 2020
Difa Febymarini
041993449
ADBI 4201 Bhs Inggris Niaga
EKONOMI
83 / S1 Akuntansi
23 / KOTA BOGOR
Bogor, 20 Desember 2020
Difa Febymarini
Answer to the Questions :
1.) How governments influence business cycles?
Answer :
The business cycle is also known as the economic cycle or trade cycle. In simple
terms, the business cycle can be interpreted as a series of recurring, constant, and
regular economic conditions over a certain period. Although repetitive, the business
cycle cannot be predicted or determined with certainty. The variable used as a
measure of the business cycle is the real Gross Domestic Product (GDP) growth
rate.
Business cycles can be implemented as a type of fluctuation in the agreed economic
activity of different countries, which consists of expansion, recession, contraction,
and economic revival. The duration of a business cycle varies widely, from the
shortest of more than one year to the longest of ten to twelve years. Even though it
fluctuates, the period cannot be predicted with certainty. This means that even
though the business cycle is a recurring economic condition, the period where the
repetition occurs cannot be certain in the same period of time.
One of the influences of government in influencing the business cycle is in pouring
physical policies into a country, Fiscal policy is important to implement because it
relates to the proportion that says that the taxation of a certain amount on taxpayers
will increase government revenue.
Fiscal policy can be used to stabilize fluctuations in economic growth. When the
economy is in a recession, expansionary fiscal policy can stimulate demand for
goods and services and stimulate economic growth. Conversely, fiscal policy can
help cool an overheated economy through fiscal tightening. Thus, the right fiscal
policy to reduce the business cycle is a counter-cyclical fiscal policy.
I think that's the role of government in influencing the business cycle.
2.) What does first mover advantage mean in business?
Answer :
The first mover advantage is any profit a company accrues from being the first to
offer a product or service to the market. First movers have the opportunity to extract
the greatest long-term benefits from product introduction.
meaning the first mover is the first company to market a product or service.
Companies build demand and markets, before other companies enter. There are a
number of advantages and disadvantages of being the first to hit the market.
Being the first usually allows a company to build strong brand recognition
and customer loyalty before competitors enter the arena. The three main sources of
first-mover profits are technology leadership, exploitation and control of scarce
assets, and buyer switching costs. In addition, the advantage also comes from the
experience curve effect. However, being the first is also not always profitable.
Companies have to bear large investments and risks, especially regarding the
development of new products, building distribution networks and stimulating
demand. Furthermore, any mistakes and imperfections can be exploited by the
following company (the latter) to compete with the first company.
3.) Why human capital is important for a country?
Answer :
Get to know the Human Resources index, a new index from the World Bank. This
HR Index will measure the health of children, adolescents and adults, as well as the
quantity and quality of education that children born now at 18 years of age can
expect. ... "Because human capital is capital for a country.
Human capital, or individual potential, will be the most important long-term
investment a government can make for the future prosperity and quality of people's
lives.
Human capital is a very important component in organizations. Humans with all their
abilities when put to the fullest will produce an extraordinary performance. There are
six components of human capital, namely :
(1) Intellectual capital
(2) Emotional capital
(3) Social capital
(4) fortitude capital
(5) moral capital
and (6) Health capital.
These six components of human capital will emerge in an optimum performance
when accompanied by leadership capital and organizational structure capital that
provide a supportive working vehicle.
and of course it will have a positive impact on the progress of a country where
individuals in an organization will be very optimal from the 6 components of capital
that have been mentioned.
so that is the reason for the importance of the human mode in a country.
4.) What is an example of a laissez faire policy?
Answer :
Laissez-faire is a political ideological concept that rejects the practice of government
intervention in the economy. This term, in French, means "leave us alone". The
reason for the rejection is because the state is seen as an obstacle to economic
growth and development.
Market mechanisms work to determine the most efficient allocation of resources.
Price becomes a signal for supply and demand in the market. Changes in supply and
demand will eventually lead to equilibrium, the point at which social benefits are
maximum. Such equilibrium will not be achieved if the government intervenes.
Adam Smith, who is often called the father of economics, said that the free
market has given freedom to the wider community to be able to make and buy and
sell goods as they like. In addition, free markets are also able to open markets to
foreign countries and give birth to wider economic competition in which everyone
naturally prefers goods at low prices to enrich themselves without government
interference.
as an example of the free market applied by Indonesia to ASEAN countries,
namely various ASEAN countries that form an ASEAN FREE Trade Area in creating
a free trade zone in order to increase economic competitiveness in the ASEAN
region.
