Industries Relationship to the Economy

Industries Relationship to the Economy

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Industries Relationship to the Economy

An industry is economic activities that usually deal with the processing of raw materials so as to manufacture finished goods in factories or in any other field.  It is a business action, which is usually related to the raising, producing and processing products. When all industries to have a similar relationship to the economy, this can cause job losses as most studies find that so many jobs drop at organized companies, with employment lessening between 5 percent and 10 percent and this has really affect the economy (Inkster, 2001). Unemployment is the main root structural problem in the economy. It can also make the industries to invest less and by not investing well, this will lead to less competition in the market and by having no competitors, the industries will lose gradually and eventually sink.

Organization of Petroleum Exporting Countries (OPEC) is an example of a company that have different relationships to the economy by attempting to cut the supply of oil so as to raise its price. They pass on those top salaries to customers through higher prices, but often earn lower profits in return. The research finds that unions do benefit their members but hurt customers usually, and particularly workers who are left without job opportunities (Baye, 2003).

General Motors is another example of a company that has different relationships to the economy. They jointly agreed to increase the cost of the cars they were selling so that their profits would rise people were unable to purchase the cars at the higher price. They ended up selling fewer vehicles hence hiring fewer workers. The General motors shed thousands of jobs and so many people lost their jobs. Their stock would rise but the overall economy would really be affected by the whole situation....