The Business Environment Essay Example | Topics and Well Written Essays - 750 words - 1

The Business Environment - Essay Example Business also stabilizes the country’s currency through exports which counters the imports brought in the country. Governments also levy goods that are exported out of the country making it possible for it to invest in projects that will spearhead growth of the economy (Begg, 2001). One of the roles of businesses in the economy is the circulation of currency in the economy. The movement of money is what is called the velocity of money in the economy. This helps in reducing the rate of inflation rate in the country which has adverse effect on the growth of the economy (Begg, 2001). When the velocity of money in the economy is high, the rate of growth in the economy is also is high. Therefore, businesses play an important role in sustaining the economy of the country. Business also offers commodities and services to the public by making them to be easily accessible to them. It ensures that goods and services are available to consumers in the right time, at the right place and at the right quantity (Denby, 2010). This ensures that there is coordination on every part of the economy regardless of its position. The ease with, which products can reach the market and be consumed, can always bring economic prosperity, which is the dream of most governments. Business therefore, plays a crucial role in sustaining the population of the country therefore creating a serene environment for the public to venture in other economic growing activities. The urge of the profit organization to make maximize profits sustains the level of supply and demand. These forces enable the economy to remain stable as high demand results from deficit while low demand is as a result of low surplus. Increased profits by the organizations especially from exports play a crucial role in increasing savings by the banks which are later used to lend to banks customers. This capital is used in