Measuring the economic activity and how it is important for business

Measuring the Economic Activity And How It is Important For Business

Economic activity The production, distribution, and consumption of commodities.

https://www.google.com.pk/search?q=impact+of+gdp+on+small+business&hl=en&authuser=0#hl=en-PK&authuser=0&q=economic%20activity%20definitionMeasures of economic activityGDP, GNP and NNP GDP per CapitaUnemployment RateProductivityPersonal IncomeRetail SalesInflation .Interest rates https://countrydata.bvdep.com/version-2012413/EIU/Help/measuringeconomicactivity.htm reading GDP, GNP and NNP Gross Domestic Product. GDP is the total of all economic activity in one country, regardless of who owns the productive assets. For example, the UK's GDP includes the profits of a foreign firm located in the UK even if they are remitted to the firm's parent company in another country.Gross National Product. GNP is the total of incomes earned by residents of a country, regardless of where the assets are located. For example, the UK's GNP includes profits from UK-owned businesses located in other countries.Net National Product. The "gross" in GDP and GNP indicates that there is no allowance for depreciation (capital consumption), the amount of capital resources used up in the production process due to wear and tear, accidental damage, obsolescence or retirement of capital assets. Net national product is GNP less depreciation.

Whats the difference between GDP and Economic Activity ?6How do interest rates affect business activities in our economy?

Interest rates can encourage or discourage borrowing and spending. Lower interest rates allow consumers greater spending power, which increases demand, productivity, and employment.Businesses often pass on the cost of higher interest rates to consumers.

Circular Flow of Economic ActivityTheFlowof Goods, Services & Resources. Learn about the simple model used to describewhere money goes and what it is exchanged for in a marketeconomy. The circular flowmodel ofeconomic activity shows you the basic relationships between households, firms and the government ...

Small business importance In an established economy A January 2012 reportfrom the SBAs Office of Advocacy found: Small businesses continue to be incubators for innovation and employment growth during the current recovery. Small businesses continue to play a vital role in the economy of the United States. They produced 46 percent of the private nonfarm GDP in 2008 (the most recent year for which the source data are available), compared with 48 percent in 2002. http://www.sbecouncil.org/about-us/facts-and-data/

Economic activity and its impact on businessRead the articleAns the question after the reading (Ans should include the rational arguments)In which economy you want to invest ?Under-developed Developed Developing Standard of living in Pakistan. With a per capita GDP of$4736(PPP, 2014) in 2014. the World Bank considers Pakistan a lower Middle-income country, it is also recorded as a "Middle Development Country" on the Human Development Index 2015.Will u want to invest in Pakistan? If yes , why ? If not, why ?If the Ans is yes, why the direct investment in Pakistan is low?If no, why the above statement is good for other country rather than Pakistan?Did u feel that GDP and other measures of economic activity (that you studied in previous slides) isnt sufficient ?

Is the small business important for an economy ? (give reason, by reading the article, argument should include the Statiscal measure)Check list What is economic activity? How it can be measure? Is that measures are always important in business, for small and medium enterprisesCircular flow of economic activity, and how much importance of business in that flow?

Important links http://kalyan-city.blogspot.com/2011/03/what-are-economic-activities-types-of.htmlhttp://www.ehow.com/info_8552885_gdps-effect-business.htmlhttps://countrydata.bvdep.com/version-2012413/EIU/Help/measuringeconomicactivity.htmhttp://smallbusiness.chron.com/relationship-between-gross-domestic-product-business-cycle-21751.htmlhttp://www.statssa.gov.za/?p=1143