Replies (300 words total – 100 words minimum, per reply)
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Additionally, you will reply to a minimum of 3 other classmates’ threads. Thus, you will have
submitted substantive written responses to a minimum of 3 other classmates’ threads.
What is Substantive Interaction?
The School of Business is committed to the collaborative learning model. In this course,
collaborative learning requires each student to read and spend time reflecting on other’s
postings, and then respond in a substantive manner to the postings of others. In composing
substantive responses, you can do several things, such as:
o compare/contrast the findings of others with your research;
o compare how the findings of others relate and add to the concepts learned in the
required readings; and/or
o share additional empirical knowledge regarding global business — or international
experiences you may have had — relative to the postings of others.
The collaborative learning model requires substantive interaction between students on a
weekly basis. Consider the Discussion as equivalent to being in a class, thus maintain
professional communication standards at all times (no “IM” shorthand or informal jargon,
DISCUSSION POST:Key Term and Why I am Interested
The key term that I plan to discuss in this week’s thread is inflation. Inflation has been a dominant topic in today’s current state of the country. Inflation is discussed every day in our country. Inflation has caused our prices in our country to rise and the impact that inflation has had on business in our country interest me. When prices are high usually the cost of production is high and inflation is a main contributor to in increase is prices of production and the prices of products. The money supply in our country is at the highest it has ever been, and the result has made prices skyrocket and the American dollar go a less farther than it should.
Explanation of Key Term
The overspending on money by borrowers, both consumer and industrial, causes the expansion of the money supply (Satterlee, 2018). When the money supply expands rapidly and there is too much of it in circulation, the general public begins to experience inflation. Therefore, inflation makes the consumer’s purchasing power because it cost more to produce goods and services (Satterlee, 2018). When the money supply grows too big for the size of the economy the overall unit value of the dollar goes down, which causes a purchasing shortage for the consumer. Inflation causes the cost of production of goods as well as the cost of services to rise, therefore causing prices to rise.
Major Article Summary
My major article is called written by Foluso Akinsola and Nicholus Odhiambo, and is titled “Inflation and the Economic Growth.” This article goes into detail on inflation and its overall impact on economic growth. The article explains that the impact of inflation on economic growth is different from country to country depending on the time period and the current state of the economy in a country. The article discusses its findings on how inflation typically has a negative impact on the overall economy of a country, especially in developed countries where economics are established (Akinsola & Odhiambo, 2017). The article explains inflation as the continuous increase in the general level of prices of goods and services over time or in their simple words, “too much money chasing too few goods” (Akinsola & Odhiambo, 2017). The article explains that inflation causes a long decline in the purchasing power that consumers have. According to the article maintaining a safe level of inflation can promote economic growth, however times of extreme inflation can cause economies to go into recession type atmospheres. Inflation has a negative effect on economic growth, however the article explains that there is no evidence of the effects it has on the long term outlook of an economy. It explains that in the short term high inflation causes poor economic growth or causes an economy to recede.
The cited work relates to my explanation of inflation because of the negative impacts that I explained it has on an economy. The article explained inflation as an increase in prices of goods and services, which causes the prices for consumers to rise, leading to poor economic growth. I explained inflation in similar words by stating that inflation is when money supply is too high along with the combination of the prices of goods and services causes the consumer dollar to decrease in value. Both my explanation and my major articles explanation are very much related in the way inflation is described, and how it negatively affects the economy.
My main article and the other articles that I researched all mention the same common aspects of inflation. Inflation is caused by having too much money in circulation, which causes the price to produce goods or services to up, which causes the price for the consumer to go up. The other articles that I researched go into detail about what causes inflation and how they affect an economy. The articles go into detail about how inflation affects the price of goods and services. They also go into detail about how the price for consumers gets worse during times of inflation. Factors such as energy cost, material cost, supply and demand, and surplus of money are all contributing factors to rising inflation. All articles that I researched agree relate to one another on the causes and consequences of inflation.