Tugas 1 Bahasa Inggris Niaga

TUGAS 1
A. Understanding Business Cycle really helps business people to operate his business
successfully.
Do you agree or disagree to the statement?
B. Government is the most responsible if Capital Flight happens in a country.
Do you agree or disagree to the statement?
C. To be First Mover in a business, you do not have to have market analysis.
JAWABAN
Understanding Business Cycle really helps business people to operate his business
explanation
What Are Business Cycles?
Business Insider imagines business cycles as the ebb and flow of a tide. Business cycles
naturally fluctuate through four phases or stages: expansion, peak, contraction and trough.
These natural periods of growth and decline are universal across capitalistic economies. Due
to globalization, they can occur at similar times across different countries.
Business cycle phases are determined by considering gross domestic product (GDP), interest
rates, total employment levels and consumer spending. Business cycle phases do not occur at
regular intervals; however, they possess clear indicators. As a business owner, it’s important
to understand these indicators and how you need to react to them. Business Cycle:
Expansion and Peak
The most desirable phase of a business cycle is expansion. In the broader economy, this
phase marks steady growth in both production and profit, with a booming stock market and
low unemployment. During this time, investors tend to buy as prices rise with an increase in
demand. This phase is considered “normal,” according to Business Insider. If well managed,
an expansion phase can last for years. It is sometimes called a Goldilocks economy.
The expansion phase eventually ends, and it usually does so when the GDP growth rate
exceeds 3 percent and inflation grows past 2 percent. This signals the second phase of the
business cycle, which is the peak. When there is no room to climb further, the economy falls
downward.
Business Cycle: Contraction and Trough

As economic activity falls downward, the cycle enters its contraction phase. Unemployment
rates spike, stocks trend downward, and the GDP growth rate drops below 2 percent.
Businesses have to cut back on their activities.
If the GDP rate continues to fall during the next two consecutive quarters, the economy enters
a recession, explains Business Insider. The 2008 U.S. recession is a business cycle example
in which the economy plummeted a brutal 8.4 percent during the fourth quarter during a
severe and challenging contraction phase.
The contraction eventually hits its low point, which is known as the trough. Once the trough
phase is hit, the economy starts to recover and rebound. Recovery is not always speedy, but at
this point, the cycle begins again as the economy enters another expansion phase.
Why Business Cycle Phases Matter
Understanding business cycles allows owners to make informed business decisions. By

keeping a finger on the economy’s pulse and paying attention to current economic
projections, they can speculate when to prepare for a contraction and take advantage of the
expansion. Knowing how to read whether the economy is in expansion or hitting its peak can
set the stage for how a business withstands the contraction.
Suppose experts speculate an incoming contraction or even recession. In that

case, Forbes suggests that businesses can safeguard their assets by diversifying revenue,
reducing expenses, creating and feeding an emergency fund, keeping inventory low and
managing debt. By taking the proper measures in anticipation of a downturn, you are
increasing your business’s longevity. In the case of a recession, it may be your only shot at
survival.
It’s also important to understand how business cycles affect various sectors of the economy,
which is relevant for making investment decisions for both personal and business
matters. Wall Strategies notes that technology, consumer discretionary and financial stocks
are sensitive to the business cycles. For example, technology stocks do well during expansion
but decline quickly during contraction.
What Is the Sequence of Business Cycle Phases?

The phases of the business cycle indicate the conditions of business and economic activity
within the United States. These phases are broad, only providing an overall snapshot of
activity. Business in the United States tends to run on a recurring cycle that begins with an
expansion, followed by a peak, a contraction and a trough. Peaks and troughs are the
extremes, and the cycle generally runs back and forth between long period of expansions
and contractions. Current business cycle conditions affect your ability to succeed as an
entrepreneur.
Business is on the uphill during the expansion phase. Consumers are likely to be in good
spirits after an unsettling contraction or trough. The unemployment rate generally declines as
jobs are created. Spending is increased, so the demand for goods and services also increases,
causing business output to rise. Business is good for the small business owner during the
expansion phase. This phase is also a good time to start a business. In the 31 business cycles
since 1854 that have occurred as of September 2011, the average length of the expansion
phase has been 35 months, according to Jon A. Hooks of the American Bankers Association
in his book, "Economics: Fundamentals for Financial Services Providers."

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TUGAS 1

Do you agree or disagree to the statement?

B. Government is the most responsible if Capital Flight happens in a country.

Do you agree or disagree to the statement?

C. To be First Mover in a business, you do not have to have market analysis.

What Are Business Cycles?

Business Cycle: Contraction and Trough

Why Business Cycle Phases Matter

Understanding business cycles allows owners to make informed business decisions. By

Suppose experts speculate an incoming contraction or even recession. In that

What Is the Sequence of Business Cycle Phases?

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