How would you advise an individual or family to save if they are having challenges making ends meet? for SMA Pro
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assignment_instructions_1.docA one page response regarding this question. How would you advise an individual or family to save if they are having challenges making ends meet? Please use the book as the source.
The book are on coursesmart email: [email protected] passw: desflo81 Froeb, L. M., McCann, B. T., Ward, M. R., & Shor, M. (2014). Managerial economics: A problem solving approach (3rd ed.). Mason, OH: South-Western Cengage Learning. ISBN: 9781133951483. Salvatore, D. (2011). Managerial economics in a global economy (7th ed.). New York, NY: Oxford University Press. ISBN: 9780199811786. Please use some Biblical verses in here. However, they do not count as source. Do not forget to use the books as 2 of the sources.
This is only in reference to question 5.
My actual Paper
Question 2
Effects of e-commerce
E commerce affects businesses as well as individual consumers. For businesses, through e commerce, there is cutting of costs as a wider audience is reached unlike the past retailing methods that were quite expensive. Businesses incur a substantial amount in the development of a fine website to get the huge benefit associated with e-commerce. Businesses are able to sell their goods online, which opens the markets to international and national customers. E commerce marketing also allows for competition between the smaller and larger companies and reduces the operational costs well as it provides a 24 hour shopping at a reduced cost.
Online or e commerce posses as a disadvantage to businesses since it allows for stiffer completion experienced globally. Additionally, it is not always smooth for all companies to move to e commerce due to high costs of restructuring. This thus means that for some companies to move to e commerce, they must consider some degrees of investment to raise the money.
Both businesses and individuals have the pressure to have a good internet access to do online buying and selling including submission of orders and looking up for catalogues for necessary information about a product. E commerce has really affected both businesses and individuals in terms of pricing, availability of the products, patterns of transportation and behavior of consumers (Chris, 2011).
E commerce is not always viewed as a better alternative to high street buying by all customers. There are those customers who prefer shopping on the high streets and feel uncomfortable buying online. Consumers today make use of their computers and other electronic devices such as smart phones to buy needed goods online. With online trading, there is no geographic restriction since buyers and sellers can buy and sell from wherever they are. Consumers incur fewer costs while searching for the goods they need also creating dispersion of many goods needed by consumers (Froeb, McCann, Ward & Shor, 2014).
Question 5
Important is saving for a household and the economy
Saving is very important for a household and the economy. Families should not allow their household savings to be too low. The rate of consumption should not be allowed to be greater than the disposable income a family has. This thus means that after a family has gotten that check and bought everything needed, there must be something substantial remaining to save.
Household saving is seen as an economic indicator to show a healthy economy of a country. Household savings acts as cushions when families respond to shocks in the economy including increased oil prices. Additionally, household savings are important in allowing banks to loan out their money through the Federal Reserve System where banks are required to keep between $10-$15 in cases where they have $100 total deposits and lend the rest to borrowers at an interest (Salvatore, 2011).
Household savings should be of some substantial amount to be able to cushion families in time of need. If the shield is thick during protection, there is less friction. If the cushioning is less, then families will be caught up with the needs and end up struggling to make ends meet. For nations to lift their household spending there is a need to fix social and institutional problems. Restructuring the economy by having more specialized businesses with skilled personnel offering specialized services is paramount. Secondly, there is a need for the consumption portion of the current account balance going down even though monetary easing is needed to support the labor markets (Egan, 2012). In the bible, ants are creatures of little strength, yet they store up their food in the summer (Proverbs 30:25). Additionally, in John 6:12, Jesus tells the disciples to gather left over and let nothing go to waste after they have had enough to eat. This thus means that the concept of saving has lived ever since and people should be prepared for the future using what they currently have.
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