Reference no: EM133262578

Question: What do you think about this discussion?

Economic forces include the rise and fall of inflation, financial stability and unemployment rate. Starting with inflation harms the general environment of the business by making things costly in inflation which results in fewer sales which decreases profit margins, and when deflation, it lowers the nominal growth. Secondly, economic stability increases profit margins because businesses have to pay fewer taxes in a stable economy. Lastly, the unemployment rate affects the company's workforce. With more workforce, we can produce more products than a smaller workforce-inflation results in managers restructuring the workforce to reduce costs. Economic stability gives a chance to managers to hire some good people in the force. An article published by financial online said that "economic stability creates the right environment for managers to hire". The unemployment rate makes it difficult for managers to accurately inform all the employees about the changes in the organisation, which was mentioned in an article by Aaron marquis.