Question

Economic growth is most likely to result in which effect for a buisness?

Answer 1

Economic growth is beneficial for businesses in multiple ways. It usually leads to increased demand for goods and services, which can lead to increased sales, profits, and market share. Additionally, it often leads to lower prices for inputs, allowing businesses to reduce their costs. It can also lead to increased investment from both domestic and foreign sources, helping businesses grow their market presence. In the long-term, economic growth can lead to a more skilled and productive workforce, which can help businesses stay competitive in the global market.

Answer 2

An economy is said to be growing when the value of its goods and services rises, generating more revenue for companies. Hence, stock prices increase. This provides businesses with money to expand and recruit more workers. The overall productivity of a corporation may increase as a result of economic expansion. One effect of economic expansion would be an increase in consumer interest in a company. In order to sell more goods and services, the company would then need to manufacture more of them, which would enhance productivity.