Question

The country Bornizia recently experienced a drop in inflation. This change facilitated sales for many organizations and also increased employment. In the context of the general environment, this scenario best illustrates the effect of the _____ on organizations.

Answer 1

Answer: Economy of the country

Explanation:

Inflation can affect the business and individuals negatively or positively. If prices increase in a way that it becomes expensive to operate businesses, commodities increase,price for food and energy also increases this will affect the entire economy negatively. This rise in prices is known as inflation which affects how businesses run their operations, increases the cost of living and other areas, this impact businesses and people severely such that people may start to lose their jobs.

However, if the inflation is maintained at a reasonable level the economy will be affected positively such that companies may start to hire more employees and business will be doing well since consumers will also have sufficient money to buy goods and this affect the growth of the economy positively.