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Impact of fiscal policy and culture to business

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How would a manager assess the impact of fiscal policy on an industry?

How will different cultural perspectives of a region impact your global business operations?

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Solution Summary

This solution is about the impact of fiscal policy on an industry. It discusses also the impact of culture in global business operations.

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Question: How would a manager assess the impact of fiscal policy on an industry?

Answer:
Fiscal policy is the use of the taxation power of the government.

Managers can assess the impact of fiscal policy by looking at income changes, demand patterns, and investment climate.

Rise in tax rate will reduce income of households and business firms. In this case, the industry suffers a reduction in income because consumers will prioritize spending only on basic necessities. Income is an expense therefore a deduction in the salary of individuals.

Changes in tax have a significant effect on the demand ...

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