Saved Help Save &Exit 2 Genie Software Inc. has been operating in the country of
ID: 2337691 • Letter: S
Question
Saved Help Save &Exit 2 Genie Software Inc. has been operating in the country of Jamtland for almost a decade. The nation is currently experiencing an economic downturn. Which of the following is the most likely benefit of this economic condition for Genie Software Inc.? Multiple Choice Genie will have better access to highly skilled human capital at a lower cost. Genie will have to expand its operations to meet the increasing consumer demand Genie will experience less competition from rival companies Genie will find it easier to raise prices to increase profitsExplanation / Answer
1. When the nation is experiencing economic downturn , Financial opputunities in the country are reduced.
2. Investments in the country will be reduced, government's borrowing will be increased, people can't get loans and jobs easily , stock prices will be fallen.
3. In such a situation consumer's spending will reduce. There wont be increasing demand in the economy. So Genie will not have to expand its operations to meet the consumer demand. Moreover in economic downturn companies will be more cautious in spending and investing.
4. Genie cant raise prices and increase profits as the overall economic condition of the country is poor. In economic downturn there will be lower inflation.
5. Economic downturn has nothing to do with competition among rivals. Hence Options B,C,D are not the benefits for Genie.
6. The most likely benefit for Genie Software Inc. in economic downturn is Genie will have better access to highly skilled human capital at lower cost.
7. In economic downturn people can't get jobs easily since overall oppurtunities in the country are reduced. So unemployment increases. As a result more people search for jobs, wages will automatically reduce, and skilled human capital can be available to the company at lower cost.
8. Hence economic downturn is correct oppurtunity for a company to increase or upgrade their human capital.
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