Total Posts:2|Showing Posts:1-2
Jump to topic:

Economic theories

johanbergman97
Posts: 1
Add as Friend
Challenge to a Debate
Send a Message
10/14/2015 3:55:52 PM
Posted: 1 year ago
Hi,

I am currently writing an essay regarding entrepreneurship in China, but more specifically what future Swedish companies have in China. I have come across an obstacle though, which is that I do not know any theories that I can apply to my thesis. So my question to you is if you know about any economic theories that might help to explain the behaviour of companies in a market.

Thanks in advance,
Johan
ColeTrain
Posts: 4,292
Add as Friend
Challenge to a Debate
Send a Message
10/15/2015 7:51:28 PM
Posted: 1 year ago
At 10/14/2015 3:55:52 PM, johanbergman97 wrote:
I am currently writing an essay regarding entrepreneurship in China, but more specifically what future Swedish companies have in China. I have come across an obstacle though, which is that I do not know any theories that I can apply to my thesis. So my question to you is if you know about any economic theories that might help to explain the behaviour of companies in a market.

I don't claim to be an expert in any regard, but I have some knowledge.

Economically, a company must keep a considerable balance between wage rates and productivity. If companies push wages too high, productivity and profit decline incrementally. Another factor, however, is the prospect of paying wages *too* low. If wages are too low, the jobs become less quality and employee morale and attitude are degraded. Essentially, the key to keeping a company running (and hopefully growing), is to find an acceptable and feasible balance in which the both the company and employers are happy.

To relate this to your specific question... I'd be willing to say that successful companies find that balance and unsuccessful ones do not. The subsequent answer to Swedish success is finding that balance while maintaining positive relations with China as well.
I hope this helps. :)
"The right to 360 noscope noobs shall not be infringed!!!" -- tajshar2k
"So, to start off, I've never committed suicide." -- Vaarka
"I eat glue." -- brontoraptor
"I mean, at this rate, I'd argue for a ham sandwich presidency." -- ResponsiblyIrresponsible
"Overthrow Assad, heil jihad." -- 16kadams when trolling in hangout
"Hillary Clinton is not my favorite person ... and her campaign is as inspiring as a bowl of cottage cheese." -- YYW