How Do Changes in Each of the Factors Affect Our Lives?

Nick Johnson

August 26, 2018

Intro to Business

Thomas Lippert

Chapter 1

1. How do changes in each of the factors affect our lives?

        Economically the size of the town plays a huge part in how successful your business will be.  What I mean by this is that if your business is in a small town you will have to have higher prices because you sell less, but if your business is in a big town you could charge less because you would sell more making up for the difference.  This leads into the competition side of the business also.  The competition usually leads to lower prices, new products, and increased marketing and branding efforts.  Global trading is affecting our lives right now how trump is placing holds on some country’s trading with us because of the outrageous taxes on their products.  Technology goes both ways in how it affects our lives because of how fast technology advances.  Ever year there is always a new product that puts the old one out of business.  A good example of this is the cell phone; a new iPhone comes out twice a year each year putting the older models out of order because they stop making updates for them so they cannot keep up with the technology.  Social plays a big role in the business environment because if your business gets bad reviews or something like that, it could lose a substantial amount of business.

2.     How does competition among business benefit you as a consumer?

        Competition amongst business help us consumers out tremendously because it lowers the prices of items that might have been market up just because they could charge whatever they wanted.  A good example of this is the gasoline/oil industry.  If a town has only one gas station and nowhere else in to town sells gas, they could charge 20 cents over what they would normally charge.  But once another business gets gas, they could charge less than them and get all the customers that then would drive the price down at the first place making it better for the consumer because you would be paying less for the gas.