BUKU JAWABAN UJIAN (BJU)

UAS TAKE HOME EXAM (THE)

SEMESTER 2020/21.1 (2020.2)

Nama Mahasiswa : FAHMI SHIDDIQ PANJAWI

Nomor Induk Mahasiswa/NIM : 041997793

Tanggal Lahir : 13/01/2000

Kode/Nama Mata Kuliah : ADBI4201/BAHASA INGGRIS NIAGA

Kode/Nama Program Studi : MANAJEMEN

Kode/Nama UPBJJ : 23/BOGOR

Hari/Tanggal UAS THE : Minggu/20-12-2020

Tanda Tangan Peserta Ujian

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1. Anda wajib mengisi secara lengkap dan benar identitas pada cover BJU pada halaman ini.
2. Anda wajib mengisi dan menandatangani surat pernyataan kejujuran akademik.
3. Jawaban bisa dikerjakan dengan diketik atau tulis tangan.
4. Jawaban diunggah disertai dengan cover BJU dan surat pernyataan kejujuran akademik.

KEMENTERIAN PENDIDIKAN DAN KEBUDAYAAN

UNIVERSITAS TERBUKA
 Surat Pernyataan
Mahasiswa
Kejujuran Akademik

Yang bertanda tangan di

bawah ini:

Nama Mahasiswa : FAHMI SHIDDIQ PANJAWI

NIM : 041997793

Kode/Nama Mata Kuliah : ADBI4201/BAHASA INGGRIS NIAGA

Fakultas : EKONOMI

Program Studi : MANAJEMEN

UPBJJ-UT : BOGOR

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laman https://the.ut.ac.id.
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ujian UAS THE.
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pekerjaan saya).
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aturan akademik yang berlaku di Universitas Terbuka.
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apapun, serta tindakan tidak terpuji lainnya yang bertentangan dengan peraturan akademik
Universitas Terbuka.

Demikian surat pernyataan ini saya buat dengan sesungguhnya. Apabila di kemudian hari terdapat
pelanggaran atas pernyataan di atas, saya bersedia bertanggung jawab dan menanggung sanksi akademik
yang ditetapkan oleh Universitas Terbuka.

Minggu, 20 Desember 2020

Yang Membuat Pernyataan

FAHMI SHIDDIQ PANJAWI

1. How governments influence business cycles?
The Business Cycle
The term “business cycle” (or economic cycle or boom-bust cycle) refers to economy-wide fluctuations
in production, trade, and general economic activity. From a conceptual perspective, the business cycle is
the upward and downward movements of levels of GDP (gross domestic product) and refers to the
period of expansions and contractions in the level of economic activities (business fluctuations) around a
long-term growth trend.
Figure 1. Business Cycles: The phases of a business cycle follow a wave-like pattern over time with regard
to GDP, with expansion leading to a peak and then followed by contraction.

Business Cycle Phases

Business cycles are identified as having four distinct phases: expansion, peak, contraction, and trough.
An expansion is characterized by increasing employment, economic growth, and upward pressure on
prices. A peak is the highest point of the business cycle, when the economy is producing at maximum
allowable output, employment is at or above full employment, and inflationary pressures on prices are
evident. Following a peak, the economy typically enters into a correction which is characterized by a
contraction where growth slows, employment declines (unemployment increases), and pricing pressures
subside. The slowing ceases at the trough and at this point the economy has hit a bottom from which
the next phase of expansion and contraction will emerge.

Business Cycle Fluctuations

Business cycle fluctuations occur around a long-term growth trend and are usually measured in terms
of the growth rate of real gross domestic product.
In the United States, it is generally accepted that the National Bureau of Economic Research (NBER) is
the final arbiter of the dates of the peaks and troughs of the business cycle. An expansion is the period
from a trough to a peak, and a recession as the period from a peak to a trough. The NBER identifies a
recession as “a significant decline in economic activity spread across the economy,
lasting more than a few months, normally visible in real GDP, real income, employment, industrial
production.” This is significantly different from the commonly cited definition of a recession being
signalled by two consecutive quarters of decline in real GDP. If the economy does not begin to expand
again then the economy may be considered to be in a state of depression.

Impact on Business Operations

How the business cycle affects business operations may be best explained by looking at how one
business responds to these cycles. Normal Maintenance is a small business that provides a variety of
construction services to homeowners. They specialize in roofing, deck installations, siding, and general
home maintenance. They employ three full-time workers, who typically work forty hours per week for an
average of twelve dollars per hour. The company has been in business in the same town for than twenty
years and has a solid reputation for quality work and reliability.

Expansion
Normal Maintenance is busy and has recently had to turn down jobs because it lacks the capacity to do
all the work offered. Homeowners now want to make home repairs and improvements which they had
had to put off during the sour economy. With the economy improving, others are fixing up their homes
to sell. Faced with so much demand, the owner of Normal Maintenance must decide whether to pay his
existing workers overtime (which will increase the costs for each job and reduce profits) or hire
additional workers. The competition for qualified construction labor is steep, and he is concerned that he
will have to pay more than his usual rate of twelve dollars per hour or possibly get workers who are not
as qualified as his current crew. He is, however, able to charge higher prices for his work because
homeowners are experiencing long waits and delays getting bids and jobs completed. The owner
purchases a new truck and invests in additional tools in order to keep up with the demand for services.
Customers are willing to pay more than usual so they can get the work done. Business is expanding to
such an extent that Normal Maintenance and its suppliers are starting to have trouble obtaining
materials such as shingles and siding because the manufacturers have not kept pace with the economic
expansion. In general, business is great for Normal Maintenance, but the expansion brings challenges.

Peak
At the peak of the business cycle, the economy can be said to be “overheated.” Despite hiring
additional workers, the owner and crews of Normal Maintenance are working seven days a week and are
still unable to keep up with demand. They can’t work any harder or faster. As a result, the crews are
exhausted and the quality of their work is beginning to decline. Customers leave messages requesting
work and services, but the owner is so busy he doesn’t return phone calls. Jobs are getting started and
completed late as the crews struggle to cover multiple job sites. As a result, customer complaints are on
the rise, and the owner is worried about the long-term reputation of the business. Neither the business
nor the economy can sustain this level of activity, and despite the fact that Normal Maintenance is
making great money, everyone is ready for things to let up a little.

Contraction
As the economy begins to contract, business begins to slow down for Normal Maintenance. They find
that they are caught up on work and they aren’t getting so many phone calls. The owner is able to
reduce his labor costs by cutting back on overtime and eliminate working on the weekends. When the
phone does ring, homeowners are asking for bids on work—not just placing work orders. Normal
Maintenance loses out on several jobs because their bids are too high. The company begins to look for
new suppliers who can provide them with materials at a cheaper price so they can be more competitive.
The building material companies start offering “deals” and specials to contractors in order to generate
sales. In general, competition for work has increased and some of the businesses that popped up during
the expansion are no longer in the market. In the short term the owner is confident that he has enough
work to keep his crew busy, but he’s concerned that if things don’t pick up, he might have to lay off
some of the less experienced workers.

Trough
On Monday morning, the crew of Normal Maintenance show up to work and the owner has to send
them home: there’s no work for them. During the week before, they worked only three days, and the
owner is down to his original crew of three employees. Several months ago he laid off the workers hired
during the expansion. Although that was a difficult decision, the owner knows from hard experience that
sometimes businesses fail not because their owners make bad decisions, but because they run out of
money during recessions when there isn’t enough customer demand to sustain them. Without enough
working capital to keep the doors open, some are forced to close down.
Representatives from supply companies are stopping by the office hoping to get an order for even the
smallest quantity of materials. The new truck and tools that the owner purchased during the boom now
sit idle and represent additional debt and costs. The company’s remaining work comes from people who
have decided to fix up their existing homes because the economy isn’t good enough for them to buy new
ones. The owner increases his advertising budget, hoping to capture any business that might be had. He
is optimistic that Normal Maintenance will weather this economic storm—they’ve done it before—but
he’s worried about his employees paying their bills over the winter.
The owner of Normal Maintenance has been in business for a long time, so he’s had some experience
with the economic cycle. Though each stage has its stressors, he has learned to plan for them. One thing
he knows is that the economy will eventually begin to expand again and run through the cycle all over
again.

Changes in aggregate demand (changes in consumption, investment, government spending,

exports, and imports) at a certain level which will affect the production of goods and
services. On an increase, it will cause deep fluctuations (real shocks)
economy. Output fluctuation (increase / decrease) and employment opportunities or fluctuations
GDP growth which reflects fluctuations in economic activity. Economy
a country in the long run will experience fluctuations (ups and downs).
Understanding the causes of aggregate fluctuation (fluctuation in output) is the main objective
from macroeconomics. The government of a country is minimizing fluctuations
output (GDP) with fiscal and monetary policy.
In accordance with the basic idea of Keynes ("father" of macroeconomics) who emphasized
the importance of the role of the government in regulating (regulator) the economy for stability
the economy is maintained, one of which is fiscal policy. Government influences
economy with fiscal policy in the form: government buys goods and services (G)
and produce goods and services (government output) which are components of
aggregate demand / supply and the government changes the tax (Tx) and transfers (Tr) ones
affect output, income (Y) and disposable income (available income
for consumption or savings in the household, Yd).

Fiscal policy
Fiscal policies are: Government policies regarding expenditure (expenditure) and tax policy. Fiscal policy
implemented by the government in maintaining .Economic stability is divided into two, namely:
expansionary fiscal policy and fiscal policy
contraractive.

Expansion Fiscal Policy

An expansionary fiscal policy is an increase in government spending or a reduction net tax aimed at
increasing output (aggregate income = Y)

Contractive Fiscal Policy

Fiscal policy contraction decreases government spending or increases net tax intended to reduce output
(aggregate income = Y)

Strategic Role of Fiscal Policy

As one of the macroeconomic policy tools to achieve development targets, fiscal policy has three main
functions, namely functions budget allocation for development purposes, revenue distribution function
and subsidies in an effort to improve people's welfare, and functions macroeconomic stabilization in an
effort to increase economic growth.
As an economic stabilizer, the APBN, as a fiscal policy instrument, should be efforts are made to
function optimally in reducing business cycles or fluctuationseconomic, or are countercyclical. This
means, in condition a sluggish economy, autonomous government spending, in particular
expenditures for goods and services as well as capital expenditures can stimulate economy to grow
higher. Conversely, in economic conditions which is heating up due to too high demand for gregat, fiscal
policy can be utilized to play a role in cooling the wheels of economic activity, by balancing the
conditions of demand and provision of resources economy through the impact of APBN contraction.
Thus, a strategic function APBN, as an instrument of fiscal policy in influencing the national economy, it
can be seen from the impact, either directly or indirect to other sectors, such as the real sector, the
monetary sector, and also external sector.external sector.

2. What does first mover advantage mean in business?

A first mover is a service or product that gains a competitive advantage by being the first to
market with a product or service. Being first typically enables a company to establish strong
brand recognition and customer loyalty before competitors enter the arena. Other advantages
include additional time to perfect its product or service and setting the market price for the new
item.

First movers in an industry are almost always followed by competitors that attempt
to capitalize on the first mover's success and gain market share. Most often, the first mover has
established sufficient market share and a solid enough customer base that it maintains the
majority of the market.

Businesses with a first mover advantage include innovators, Amazon (NASDAQ: AMZN) and
eBay (NASDAQ: EBAY). Amazon created the first online bookstore, which was immensely
successful. By the time other retailers established an online bookstore presence, Amazon had
achieved significant brand recognition and parlayed its first-mover advantage into marketing a
range of additional, unrelated products. According to Forbes's "The World's Most Innovative
Companies" 2018 ranking, Amazon ranked fifth, with an annual growth rate of 30.8% and
annual sales of $193.2 billion.

eBay built the first meaningful online auction website in 1995 and continues to be a popular
shopping site worldwide. As of the second-quarter 2018, the company's revenue totaled $263
million, with 179 million customers visiting the site as of December 2018.

First movers or first movers are the first companies to market a product or service.
Companies build demand and markets, before other companies enter. There are a number of
advantages and disadvantages of being the first to hit the market.

First mover advantages and disadvantages

Being the first usually allows a company to build strong brand recognition and customer
loyalty before competitors enter the arena. The three main sources of first-mover profits are
technology leadership, exploitation and control of scarce assets, and buyer switching costs. In
addition, the advantage also comes from the experience curve effect.

However, being the first is also not always profitable. Companies have to bear large
investments and risks, especially regarding the development of new products, building
distribution networks and stimulating demand. Furthermore, any mistakes and imperfections
can be exploited by the following company (the latter) to compete with the first company.

The first mover advantage is any profit a company accrues from being the first to offer a
product or service to the market. First movers have the opportunity to extract the greatest
long-term benefits from product introduction.

The kind of first mover advantage

First movers face a great risk of failure. The reason is because the market terrain is unclear,
where market needs have not been clearly defined. Moreover, the boom in the market may be
short lived, as is the case with MP3 players.
 However, when successful, first movers have a large competitive advantage over competitors
who enter later. Being the first to enter the market offers a number of advantages, including:

1. Provides the ability to set industry standards.

2. Prevent competition by controlling scarce resources
3. Early leadership reputation development Allows the company to gain market share with
limited competition.
4. Companies have the opportunity to build brand recognition and loyalty from customers.
5. A more mature exclusive experience curve effect
6. Strengthening close cooperative relationships with stakeholders
7. It has an older keep for building extensive distribution channels

3. Why human capital is important for a country?

In economics, “capital” refers to all of the assets a business needs to produce the goods and
services it sells. In this sense, capital includes equipment, land, buildings, money, and, of course,
people—human capital.

In a deeper sense, however, human capital is more than simply the physical labor of the
people who work for an organization. It is the entire set of intangible qualities those people
bring to the organization that might help it succeed. A few of these include education, skill,
experience, creativity, personality, good health, and moral character.

In the long run, when employers and employees make a shared investment in the
development of human capital, not only do organizations, their employees, and clientele
benefit, but so does society at large. For example, few undereducated societies thrive in the
new global economy.

For employers, investing in human capital involves commitments like worker training,
apprenticeship programs, educational bonuses and benefits, family assistance, and funding
college scholarships. For employees, obtaining an education is the most obvious investment in
human capital. Neither employers nor employees have any assurances that their investments in
human capital will pay off. For example, even people with college degrees struggle to get jobs
during an economic depression, and employers might train employees, only to see them hired
away by another company.

Ultimately, the level of investment in human capital is directly related to both economic and
societal health.

Human Capital Theory

Human capital theory holds that it is possible to quantify the value of these investments to
employees, employers, and society as a whole. According to human capital theory, an adequate
investment in people will result in a growing economy. For example, some countries offer their
people a free college education out of a realization that a more highly educated populace tends
to earn more and spend more, thus stimulating the economy. In the field of business
administration, human capital theory is an extension of human resources management.

The idea of human capital theory is often credited to the “founding father of economics” Adam
Smith, who in 1776, called it “the acquired and useful abilities of all the inhabitants or members
of the society.” Smith suggested that differences in wages paid were based on the relative ease
or difficulty of doing the jobs involved. 

Marxist Theory

In 1859, Prussian philosopher Karl Marx, calling it “labor power,” suggested the idea of human
capital by asserting that in capitalist systems, people sell their labor power—human capital—in
return for income. In contrast to Smith and other earlier economists, Marx pointed to “two
disagreeably frustrating facts” about human capital theory:

1. Workers must actually work—apply their minds and bodies—in order to earn income. The mere
ability to do a job is not the same as actually doing it.
2. Workers cannot “sell” their human capital as they might sell their homes or land. Instead, they
enter into mutually beneficial contracts with employers to use their skills in return for wages,
much in the same way farmers sell their crops.

Marx further argued that in order for this human capital contract to work, employers must
realize a net profit. In other words, workers must do work at a level above-and-beyond that
needed to simply maintain their potential labor power. When, for example, labor costs exceed
revenue, the human capital contract is failing.

In addition, Marx explained the difference between human capital and slavery. Unlike that of
free workers, the human capital of slaves can be sold, although they do not earn incomes
themselves.

Modern Theory

Today, human capital theory is often further dissected in order to quantify components
known as “intangibles” such as cultural capital, social capital, and intellectual capital.

Cultural Capital

Cultural capital is the combination of knowledge and intellectual skills that enhance a person’s
ability to achieve a higher social status or to do economically useful work. In an economic sense,
advanced education, job-specific training, and innate talents are typical ways in which people
build cultural capital in anticipation of earning higher wages.   

Social Capital

Social capital refers to beneficial social relationships developed over time such as a company’s
goodwill and brand recognition, key elements of sensory psychological marketing. Social capital
is distinct from human assets like fame or charisma, which cannot be taught or transferred to
others in the way skills and knowledge can.
Intellectual Capital

Intellectual capital is the highly intangible value of the sum of everything everybody in a
business knows that gives the business a competitive advantage. One common example is the
intellectual property—creations of the workers’ minds, like inventions, and works of art and
literature. Unlike the human capital assets of skill and education, intellectual capital remains
with the company even after the workers have left, typically protected by patent and copyright
laws and non-disclosure agreements signed by employees.

Human Capital in Today's World Economy

As history and experience have shown, economic progress is the key to raising the standard of
living and dignity of people worldwide, especially for people living in impoverished and
developing countries.

The qualities that contribute to human capital, particularly education and health—also directly
contribute to economic growth. Countries that suffer from limited or unequal access to health
or educational resources also suffer from depressed economies.

As in the United States, the countries with the most successful economies have continued to
increase their investments in higher education, while still seeing a steady increase in the starting
salary of college graduates. Indeed, the first step most developing countries take to advance is
to improve the health and education of their people. Since the end of World War II, the Asian
nations of Japan, South Korea, and China have used this strategy to eliminate poverty and
become some of the world’s most powerful players in the global economy. 

Hoping to emphasize the importance of education and health resources, the World Bank
publishes an annual Human Capital Index Map demonstrating how access to education and
health resources affect the productivity, prosperity, and quality of life in nations worldwide.

In October 2018, Jim Yong Kim, president of the World Bank, warned, “In countries with the
lowest human capital investments today, our analysis suggests that the workforce of the future
will only be one-third to one-half as productive as it could be if people enjoyed full health and
received a high-quality education.”

Human capital is a factor very important in the productivity of an economy. Capital quality
Different human beings who can cause two economies to have TOTAL labor, physical capital,
resources natural power and technology are identical produce a different output.Schultz (1961)
stated that human is a form of capital, Physical and technological capital.Human capital is a
qualitative dimension human Resources. The qualitative dimension of human resources, such as
expertise and skills, possessed by someone will affect productive ability that someone.
Expertise, skill and knowledge can be increased through good educational processes and
conditions maintained health.

4. What is an example of a laissez faire policy?

 Laissez-faire is an economic theory from the 18th century that opposed any government
intervention in business affairs. The driving principle behind laissez-faire, a French term that
translates as "leave alone" (literally, "let you do"), is that the less the government is involved in
the economy, the better off business will be—and by extension, society as a whole. Laissez-faire
economics are a key part of free market capitalism.

Understanding Laissez-Faire

The underlying beliefs that make up the fundamentals of laissez-faire economics include, first
and foremost, economic competition constitutes a "natural order" that rules the world. Because
this natural self-regulation is the best type of regulation, laissez-faire economists argue that
there is no need for business and industrial affairs to be complicated by government
intervention. As a result, they oppose any sort of federal involvement in the economy, which
includes any type of legislation or oversight; they are against minimum wages, duties, trade
restrictions, and corporate taxes. In fact, laissez-faire economists see such taxes as a penalty for
production.

History of Laissez-Faire

Popularized in the mid-1700s, the doctrine of laissez-faire is one of the first articulated
economic theories. It originated with a group known as the Physiocrats, who flourished in
France from about 1756 to 1778; led by a physician, they tried to apply scientific principles and
methodology to the study of wealth. These "économistes" (as they dubbed themselves) argued
that a free market and free economic competition were extremely important to the health of a
free society. The government should only intervene in the economy to preserve property, life,
and individual freedom; otherwise, the natural, unchanging laws that govern market forces and
economic processes—what later British economist Adam Smith, dubbed the "invisible hand"—
should be allowed to proceed unhindered.

Legend has it that the origins of the phrase "laissez-faire" in an economic context came from a
1681 meeting between the French finance minister Jean-Baptise Colbert and a businessman
named Le Gendre. As the story goes, Colbert asked Le Gendre how best the government could
help commerce, to which Le Gendre replied "Laissez-nous faire" – basically, "Let us do (it)." The
Physiocrats popularized the phrase, using it to name their core economic doctrine.

Unfortunately, an early effort to test laissez-faire theories did not go well. As an experiment in
1774, Turgot, Louis XVI's Controller-General of Finances, abolished all restraints on the heavily
controlled grain industry, allowing imports and exports between provinces to operate as a free
trade system. But when poor harvests caused scarcities, prices shot through the roof;
merchants ended up hoarding supplies or selling grain in strategic areas, even outside the
country for better profit, while thousands of French citizens starved. Riots ensued for several
months. In the middle of 1775, order was restored—and with it, government controls over the
grain market.

Despite this inauspicious start, laissez-faire practices, developed further by such British
economists as Smith and David Ricardo, ruled during the Industrial Revolution of the late 18th
and early 19th century. And, as its detractors noted, it did result in unsafe working conditions
and large wealth gaps. Only in the beginning of the 20th century did developed industrialized
nations like the U.S. begin to implement significant government controls and regulations to
protect workers from hazardous conditions and consumers from unfair business practices—
though it’s important to note that these policies were not intended to restrict business practices
and competition.

Critiques of Laissez-Faire

One of the chief critiques of laissez-faire is that capitalism as a system has moral ambiguities
built into it: It does not inherently protect the weakest in society. While laissez-faire advocates
argue that if individuals serve their own interests first, societal benefits will follow, detractors
feel laissez-faire actually leads to poverty and economic imbalances. The idea of letting an
economic system run without regulation or correction in effect dismisses or further victimizes
those most in need of assistance, they say.

The 20th-century British economist John Maynard Keynes was a prominent critic of laissez-
faire economics, and he argued that the question of market solution versus government
intervention needed to be decided on a case-by-case basis.

Examples of Laissez Faire Leadership Style

In fact, the leader of Laissez Faire is a leader who gives great freedom to everyone he leads,
both in doing work and in making important decisions.That way, everyone in the organization
can work in the way he thinks fit, without any pressure or limitations from the leader.The
reason is, the leader will only give very little participation in things like this.

Even in some cases, leaders will not be involved in determining the tasks that should be
performed by their subordinates, which means they can freely choose which tasks to do.Even
when giving comments, the leader never intends to organize or judge his subordinates.It's just
that, aside from the attitude that seems not to care about the situation of his subordinates, the
leader of Laissez Faire is quite demanding that every member is always ready and able to
provide information when he asks for it.Reporting from Handoko and Reksohadiprodjo (1997)
describe 3 characteristics of leaders with the Laissez Faire leadership style, namely:

1. The leader allows his subordinates to organize themselves

2. The leader only determines policies and general goals
3. Subordinates can take relevant decisions to achieve goals in any way they deem fit.

With this kind of leadership attitude, chaos is no longer a rare thing in the organization he
leads. How not, subordinates do not get direction from their leader.Here the real leader cannot
be said to actually lead the organization, and even every achievement that is obtained is never
separated from the competent people under him.