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1、2TheNatureofBusinessThe Nature of Business Business is a word which is commonly used in many different languages. But exactly what does it mean? The concepts and activities of business have increased in modern times. Traditionally, business simply meant exchange or trade for things people wanted or
2、needed. Today it has a more technical definition. One definition of the business is the production, distribution, and sale of goods and services for a profit. The other definition of business is the organized effort of individuals to produce and sell, for a profit, the goods and services that satisf
3、y societys needs. The general terms business refers to all such efforts within a society or within an industry, however, a business is a particular organization. Businesses are generally of three types. Manufacturing business (or manufacturers) is organized to process various materials into tangible
4、 goods, such as delivery trains or 1 gloves. Service business produces service, such as fast food services or hotel services. And some firms-called middleman, are organized to buy the goods produced by manufacturers and then resell them. All three types of businesses may sell either to other firms o
5、r to consumers. In both cases, the final aims of every firm must be to satisfy the needs of its customers and to earn a profit. A person who risks his or her time, effort, and money to start and operate a business is called an entrepreneur(企业家) and he can entrust other person with his or her busines
6、s, then other person can be called a manager. The success or failure of a business is, to a large extent, dependent upon how its managers perform in terms of financial controls, marketing strategies, product design, research and development, etc. A great deal of time and effort is spent by successfu
7、l firms in ensuring that the right decision are made in a 2 competitive environment with the greatest attention being paid to the immediate environment in which the firms are operating immediate to the workforce(劳动力), to the production line, to the marketplace for products, to direct competitors. Th
8、is immediate environment is described as the microeconomic environment of a firm and involves prices, revenues, cost, and employment level and so on. Macroeconomic environment refers to the factors which are external to the immediate environment of the firm: it involves changes in general inflation
9、and employment, for example, rather than changes in the firms own product prices and workforce. Nevertheless, the foundation of business is economy and there are two aspect of it: microeconomics and macroeconomics. Microeconomics, the study of the performance of the individual economy unit about all
10、ocation of resources and the distribution of income, and how they are 3 affected by the workings of government policies and the price system. In contrast to the microeconomics, macroeconomics is a branch of economics that deals with the performance, structure, and behavior of a national or regional
11、economy as a whole. However, no matter what kind of business, it is influenced by some policies and these policies may be summarized under the general headings of: fiscal policy(财政政策), monetary policy(货币政策), exchange rate policy(汇率政策), international trade policy, supply-side policy(供给经济政策), prices a
12、nd incomes policy, employment policy. Fiscal policy is concerned with the composition of and the changes in the levels of public expenditure and taxation. Public expenditure figures for the current fiscal year (财政年度)(usually one year) and targets usually for three years along with changes in the lev
13、el and structure of taxation. Monetary policy is defined as government 4 measures to influence the cost (i.e. the rate of interest) and availability of credit (信贷的可获性) in the economy thereby affecting the overall supply of money. While fiscal changes are usually announced annually, monetary policy m
14、easures are continuous. Exchange rate policy refers to government intervention on the foreign exchange markets to influence the level and direction of the external value of a countrys currency. The degree of intervention depends upon the governments specific exchange rate objective: whether to have
15、a fixed, freely floating or managed rate, and where the exchange rate is fixed or managed, at what level to fix the rate. Exchange rate policy has important implications for trade and capital flows in and out of the country, i.e. for the current and capital accounts of the balance of payments. It al
16、so has an impact upon domestic monetary policy. Since interest rate levels may have to be set to protect the exchange rate by 5 influencing international capital flows. International trade policy involves measures taken by government, in addition to exchange rate policy, to influence the magnitude a
17、nd direction of foreign trade. There may be many reasons for these measures, notably correction of balance of payments problems, preserving domestic employment, encouraging economic growth and promoting foreign co-operation. The measures may take the form of subsidies for exports(出口补贴), tariffs (dut
18、ies) on imports and other protectionist measures(保护主义措施) such as import quotas(配额). Supply-side policy arises out of what is often termed supply-side economics. It refers to those government policies that are directed at tackling problems involving the aggregate supply (i.e. production) of goods and
19、 services in the economy. Supply-side policy, therefore, contrasts with the policies described above, especially fiscal and monetary policies, which are usually concerned with affecting the level 6 of total or aggregate demand for goods and services,-i.e. the demand side of economy. Measures used ar
20、e directed specifically at influencing productivity(生产能力) and output costs. These may involve the introduction of new technology, the encouragement of competition and enterprise, privatization of state assets(国有资产的私有化), efforts to increase labor efficiency and other measures to improve the operation
21、 of the market economy. Prices and incomes policies are examples of direct intervention by government in working of a market economy. They involve government intervention in the setting of prices for goods and services and influencing wage settlement. These policies have two fundamental aims: contro
22、l over general inflation and the protection of jobs in the domestic economy, in addition, prices and incomes. There is a general view among economists, however, that prices and incomes policies should be regarded only as temporary 7 or emergency measures: they distort the operation of markets by und
23、ermining wage and price levels which reflect the demand for and supply of goods, services and labor. Employment policy is concerned with government efforts to create jobs and thereby reduce unemployment. The policy may be implemented either indirectly, via stimulation of aggregate demand in economy,
24、 or directly through job creation schemes and training programs. 1. What does “business” mean in the text? 2. What kind of person is called an entrepreneur? 3. How many types of business are there generally? 4. How do you understand the seven policies? Decide whether the sentences are true or false.
25、 1. Traditionally, business simply meant exchange or trade for things people wanted 8 or needed. 2. In both cases, the final aims of every firm must be to satisfy the needs of its customers and without a profit. 3. A person who risks his or her time, effort, and money to start and operate a business
26、 is called a manager. 4. So microeconomic environment refers to the factors which are external to the immediate environment of the firm. 5. Microeconomics, the study the performance of the aggregate economy unit about allocation of resources and the distribution of income, and how they are affected
27、by the workings of government policies and the price system. 6. While fiscal changes are usually announced annually, monetary policy measures are continuous. 7. The degree of intervention depends upon the governments specific exchange rate objective. 9 8. International trade policy involves measures taken by government, except exchange rate policy, to influence the magnitude and direction of foreign trade. 10
