Current issues faced by the Federal Reserve, how do the decisions affect the economy?
Current issues faced by the Federal Reserve, how do the decisions affect the economy?
The term culture can be defined as the customs , beliefs, behaviors and set of principles followed by a certain group of people.
Culture play on managers in Global situations:
- Cultural behaviors mainly differs from country to country or region to region hence it is very essential for the managers to give utmost importance to the local cultures while operating business globally.
- While extending business from one territory to other, it is important to maintain cordial relations with local business partners and employees by embracing their culture.
- Should maintain proper balance between corporate/ organizational culture and demographic culture so that company values can not be compromised.
- While introducing new policies, it must be kept in a view that no individual cultural perspective is hurt.
Foreign venture into North America:
America is a diverse country and have high cultural standards.
1. The first and foremost thing is to know the business etiquette of American partners from the way they greet and to the way they communicate.
2. Since North America has different states with diverse cultures including it is always advisable to know the local culture of that particular state.
3. The Dos and don’ts while interacting with local employees and negotiating with Governing bodies.
4. Before introducing new products/ services, should keep in mind whether it is culturally acceptable or not. Because the product which is well acceptable in one country can be offensive to the other. Always advisable to launch a product/ service which is locally preferred.
5. The proper understanding of work culture of the employees will help in setting the company’s policies and procedures.
For starters, accent is a key cultural difference that effects communication. When there is a strong accent involved some words are comprehendible to the other party and therefore important information is left unheard. Also cultural differences like different ways of living in different cultures could have negative effects on communication. In places like the western world joking around with one another is acceptable, but in places like southeast asia, the elder person has to be given the utmost respect and when the cultures clash the differences can be taken negatively. Also in some places, the ladies place is in the ‘home’, in the western world the opposite is true and women are taking over leadership roles. When men from places like this see this happening this may make them feel as if though they are less of men, to have a female figure working above them. In addition to this the internet is considered a negative aspect of daily life in places like the west where the opposite is true people coming from places like this could miscommunicate the message that all people who employ the internet are ‘bad’, the same goes for cell phone use and unwed male and female interactions.
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Current issues faced by the Federal Reserve, how do the decisions affect the economy?
There are a few issues that the federal reserve is facing now. Inflation remains elevated, reflecting supply and demand imbalances related to the pandemic, higher energy prices and broader price pressures. The Ukraine and Russia war has caused tremendous human and economic hardship. This has created additional upward pressure on inflation and are likely to weigh on economic activity. On top of that, Covid-related lockdowns in China are likely to cause more supply issues, which will enhance the inflation rate. (Federal Reserve, 2022)
Federal cut the interest rate to zero when our economy was hit by the covid pandemic in 2020 and raised the interest rate when the economy is booming. As interest rates increases, the cost of borrowing money becomes more expensive. Therefore, people will reduce their spending, the demand for goods or service will reduce, If the demand for goods and services decreases, businesses will need to cut back on production, laying off workers, which increases the unemployment. Therefore, an increase in interest rates slows down the economy. However, increase interest rate will decrease the inflation. As the demand decreases, the price will decrease too, which will reduce the inflation. Decreases in interest rates have the opposite effect. (Baldwin, 2022)
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