How do businesses help a country's economy
bussinesses are the base of an economic structure.it contributes much to the economic growth of a country.
"Businesses are huge contributors to the economic structure of a country." They proved the middle ground for the exchange of various services and products. Some products may be from sources outside of the country which paves the way for a company to strive not only from within but globally as well.
The growth of a country's economy is measured by Gross Domestic Product (GDP). GDP=C+I+G+(X-M) where C=Private Consumption where I=Investment where G=Government Spending where X=Exports where M=Imports As businesses invest and produce more goods and services, consumers purchase them. This leads to higher employment. In addition, GDP per capita (i.e. per person) measures the standard of living. Therefore, as GDP increases the country's economy grows and the standard of living improves.
Join our real-time social learning platform and learn together with your friends!