Company Relationship With The Economic Problem And Production Structure

Company relationship with the economic problem and production structure

Introduction

The company is a central institution in the operation of any economic system where people meet their needs through the division of labor, collaboration in the production and exchange of goods and services. As part of the system, the company corresponds to producing goods or services for sale in the market, a necessary function so that each person can compatible the specialization in work and satisfaction of their multiple needs. The company manifests itself in the form of its own legal personality and a business name. The heterogeneity of companies in terms of dimension, a variety of goods or services that are sold to the market, activities and resources that are controlled internally, organization and internal functioning, arouses the intellectual interest of social sciences in general and the particular economy.

Developing

According to research (Fabra, 2017) macroeconomics is the part of the economy that is responsible for studying economic functioning in general, as well as the economic policies that are carried out on large scale, for example in a country. That is, it encompasses society as a whole working at once, not independently.

Some of the most used variables are the gross domestic product, the unemployment rate, tax levels or level of interest, among others.

In the work of (Fabra, 2017) microeconomy is the part that is responsible for the behavior of each economic agent, such as families, companies or workers.

It is analyzed thoroughly laws such as supply and demand, between consumers and bidders, price level, or elasticities of each product. That is, how an agreement is reached between the needs of consumers and the companies that offer goods and services, as well as all the ‘psychological’ variables that can affect, how the quality of the product or the different needs of each person.

Economy Relationship with Administration

In the study of (Hernandez, 2019) the economy is concerned, precisely, the way in which scarce resources are administered, in order to produce various goods and distribute them for consumption among the members of society. Given all the problems that arise in the individual and the companies, what the economy intends is to offer a method to order and establish the priorities, when making decisions about the individual or collective needs that you want to meet.

The economy and administration jointly analyze monetary, credit and banking policies that take into account foreign investment and international trade. The economy and administration ultimately seek the maximation of the benefit. As we know well in the administration it is controlled, plans, directs and organizes. So that the economy is the fundamental part of this since they relate to decision making regarding the national economy of the country, there are also the relationship of microeconomics, therefore it is evident, since it allows to know theoperation of the company, through which the administrator can achieve the objectives of an organization through decision making. The economy and administration act before society to perform economic and social development, includes each economic, social, political and cultural reality, in which these interinfluence in an organization. The economy is in addition to the interaction and analysis of and between markets, the administration of interaction and analysis at the company level.

Both in the economy and in the administration, the monetary aspect is jointly analyzed, but not in its entirety, since in the case of the administration, these aspects are handled in certain areas and at certain times of the process, such as thetime to make budgets for the different activities to be carried out in the company, or only in the production area.

The company and the economic problem

From the point of view of (Martínez, 2016) the economy studies economic reality, which consists of facts, phenomena, activities and economic problems that are carried out thanks to the existence of productive factors (human and material, technical and financial factors);that is, that they have to do with the satisfaction of human needs, through the activities of producing and distributing the goods and services aimed at consumption that provide the desired satisfaction. To carry out economic activities, men use resources and production techniques that apply in economic units. Economic units meet needs, for which they use resources and techniques that combine to produce goods and services in the first instance face the basic economic problems of every society: what to produce, how much to produce, how to produce, for whom to produce.

The first two problems. What and how much to produce, are located on the economic level due to their direct relationship with the mechanism of the price that occurs in the market. Companies analyze the prices of goods and services that consumers are willing to pay, in order to determine what will occur, since it has the option of choosing multiple production possibilities. Prices also influence how much to produce, since with different prices various levels of production will be offered, which will face a certain demand. For example, producing few comes at high prices or producing many goods at low prices.

The company and the structure of the production

In the study of (Monterroso, 2013) we must remember that we conceive of the company as the Basic Production Unit, that is, a systematic set of human, financial, technical and information resources that allow it to actively participate in the economic process of thesociety.

On the other hand, the economic process or set of economic activities is developed in the economic structure of society, which constitutes the basis of society development and is formed by all those elements and factors that dynamically interrelated a set form a setrelatively permanent in time and space.

In general terms, the economic structure is made up of the dynamic combination of productive forces and social relations of production. The economic structure of society can also be explained as the set of economic activities that are carried out in the unid. These economic units are responsible for the production process that includes the production, distribution and exchange of goods and services.

Bibliography

1. Fabra, a. (January 16, 2017). Differences between macroeconomics and microeconomics. Obtained from https: // business.uncoat.com/ARTICLE/DIFFERENCES-ENTRE-MACROECONOMY-Y-MICROECONOMIA-21943.HTML
2. Hernandez, h. (October 2019). ECONOMY WITH ADMINISTRATION. Obtained from https: // idoc.Pub/Documents/Relationship-Economy-Con-Administration-8JLK7363V3N5
3. Martínez, d. EITHER. (February 29, 2016). The company and the economic problem. Obtained from https: // is.scribd.com/document/301094030/la-business-y-el-problem-economic
4. Monterroso, e. (June 18, 2013). The company and the structure of the production. Obtained from https: // www.KnowledgeWeb.net/dcmt/tab12374.HTML