Economic Trends in an Executive MBA school - Essay Example

Economic Trends in an Executive MBA school The economic trend is describing the overall direction taken by the economy of a given country. Most of the economic trends are usually caused by the rapid change in telecommunication and information technologies, marketplace globalization and changes in the purchasing habits of the consumer. However, other trends in the economy are also caused by some factors. The 2007 economic crisis was as a result of a number of complex factors all inclusive of the 2002 – 2008 easy credit lending period that propelled high-risk borrowing and lending patterns, imbalances in the international trade, flop in the real estate and choices of fiscal policy that focused on government revenue and expenditures (Kotler, Philip & Kevin, 2012). The experiences of the 2007 crisis period have edited the lending and borrowing patterns in the country as it served as a lesson that there could not be a quick restoration of confidence in the financial markets once shuttered. Liquidity crisis can as well turn into a solvency crisis. This experience has resulted in a freeze in the capital formation of the country leading to business opportunities lying unexploited due to the inaccessibility of capital. This has created a challenge in the economic set up of the country (Kerin, 2012) The recession has also contributed in the fluctuations of the economic trends. Recession as described by economist refers to a consecutive two quarter negative growth in the Gross Domestic Product (GDP) of a country. During the time of recession, consumers find themselves in financial crisis. They cut back on the credit card spending and can no longer be able to pay monthly bills. As a result of such circumstance, people opt to venture into white collar jobs that needs a higher level of expertise but would eventually increase income levels. The recession would create an impact on employment and many capable firms would have a well of skills to hire from. Some firms might decide to be choosy and a graduate degree might just prove to be relevant so as to keep up with the competition for jobs. This has seen many people go for MBA which stands a better chance than having BBA only. (Kotler, Philip & Kevin, 2012) One of the other areas affected by the recession are the accounts receivable. The customers of the companies might not fail to make payment the money owed to the company at the right time, or they may never be able to pay. This turns into a violation of the credit agreement. Moreover, delinquent or late payment reduces the valuation of corporation’s debt, bonds and its ability for financial access. This means that firms would be rendered incapable to sustain its operational costs and might just close down. Many people would lose their jobs. In the preparation of such circumstances, higher level of expertise would deem inevitable to keep the firm running. Proper financial management measures could be employed to sustain the firm in the industry. All these expertise can be acquired by advanced training and education. The need for increased household income has grown higher with people resorting to venturing into two or even three jobs. This requires an extended level of expertise in the different fields. The loan programs give an opportunity for people to go back for an MBA and upgrade their certificates so that they can be able to fit at the competition of the search for white collar jobs. Some universities like the University of New Mexico offers scholarships for MBA students. In Germany, education is free of charge therefore one can have no reason not to take an MBA. The loan program has attracted a lot of people to undertake further studies as its an incentive. The federal government plays a vital role in helping its employees live a stable life. As a result of the economic fluctuations in the private sector, the populace decide to search for white collar jobs to be able to earn a stable income. The government would also engage in the act of increasing the level of expertise shown by its employees. In this attempt, it provides scholarships and fully funded research programs. Therefore, many people take advantage of these circumstances to go back to school and upgrade their certificates, which would help them acquire an increase in their household income (Kerin, 2012). Besides, the government has allowed many colleges to offer MBA by chattering them. This has made the study of MBA accessible to most people. One of the major reasons why MBA has attracted quite a number of people is the fact that it can be done part time giving opportunity for many people who are working to get a post graduate degree. Education is necessary to the growth of any economy. It is 1 of the 2 aspects that affect the wage rates the other being trained. The international trade and the principles of globalization require countries, and their economies engage in a competition with one another. Countries, which are economically successful, would hold both comparative and competitive advantage over the other economies (Kerin, 2012). This is an indication that the countries’ economies would be comprised with different industries, each of which would have advantages and disadvantages in the global scene. The level of the country's economic success is determined by the level of education and training of the workers of the country. Investment is a function of saving while saving is a function of income. Household income plays a vital role in the determination of what is to be saved. Saving also takes place only when consumption has been taken into account. The level of investment, saving and consumption/ spending all depends on the economic status. These factors can lead to different trends in the economy. Some people in the country can also decide to venture into business apart from their personal jobs. Some of these businesses would require a little bit of knowhow such as financial management and techniques or the general management of business. This will require them to go back to school and attain these skills. Household income is a measure of income by residents over 15 years in the United States (Kotler, Philip & Kevin, 2012). This cuts across wages, unemployment insurances, salaries etc. 2 household income is a means to earn extra money. The forces of demand and supply keep fluctuating as the prices of goods and services keeps on rising. All these happen when the wage bill of the country remains the same over a number of years. This situation pushes people to venture into more jobs at least to keep up with the cost of living in the country and possibly earn some extra income. In order to be successful in this endeavor, different expertise in different fields is required and this can only be done through education and training. Eventually, people have to go back to school to be able to acquire the required skills. Economically, the extra income is disposable. The disposable income creates a space for the resident to acquire needed that are beyond basic and live a fairly good life. The disposable income can also be saved for a period of time and invested to earn more. (Kerin, 2012) The referral network is a replacement of the chain of distribution of goods and services. This creates an opportunity to make extra money by referring other people to a company to buy a product. When the referred person purchases the items, the remuneration of the referrer is the commission. Some of the rules involved in referral networks are; A minimum of four comprehensive learning modules must be purchased by the referred. The referred must have not cancelled. No granted rebates in the case where the referrer does not know the referee. The referred must be of good standing. In conclusion, the economic trends in business over time have been affected by many factors. Such programs like the referral programs can help increase income levels, hence improving the economic performance of a country. Other programs like the loan program can prove to be beneficial in credit facilitation and financing. Works Cited Kerin (2012). Marketing: The Core. McGaw-Hill Ryerson. Kotler, Philip & Keller, Kevin (2012). Marketing Management. 14th Edition, Pearson Education Limited . Read More