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Explain the symbiotic relationship between the U
Explain the symbiotic relationship between the U.S. economy and American business. Be specific in identifying how one influences the other. Briefly describe the benefit to a company of giving something of value back to the community in which it is located.
Expert Solution
Generally, the prosperity of the US economy is impacted by American businesses and vice versa. Every American business operates within the US economy. The two have a symbiotic relationship since American businesses provide services and goods that boost economic output since it deals with the selling of services and products to the consumers. On the other hand, the US economy is impacted by the supply and demand for services and products in the country. Therefore, the performance of American businesses affects the US economy. According to economic expectations, American businesses decide the products they would like to produce, their prices, the number of employees in a company, and their salary levels. This in turn affects the US unemployment levels in the economy, levels of investment, amount of tax revenues, and the level of economic development, which ultimately impacts people's personal income, national sales levels, interest rates, and the country's unemployment levels. This relationship occurs in a cycle since the country's demand for products would be impacted, affecting the businesses' production rate. Changes in American businesses affect the US economy and vice versa. An increase in tax requirements in the economy reduces people's spending power, causing a reduction in business production, hence a decline in economic activities and an increase in unemployment rates.
Companies benefit from giving back to the community in the following ways;
- It motivates the employees, leading to better productivity at work.
- It leads to better brand recognition and boosts the company image.
- It creates a positive business reputation leading to increased sales.
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