Senior High School

Grade Level: Grade 11/12

Specialized Subject: Applied Economics
Semester: First
Second Quarter
MODULE 8 (Week 9-10)

LEARNING COMPETENCIES:

Explain the effects of the various socio-economic factors

affecting business and industry

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Specialized Subject (APPLIED ECONOMICS) – Senior High School
Alternative Delivery Mode
Quarter 2 MODULE 8 (Week 9-10): Effects of the Various Socio-Economic
Factors Affecting Business and Industry
First Edition, 2020

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 MODULE 8 (Week 9-10)
Effects of the Various Socio-Economic Factors
Affecting Business and Industry

I - Introduction

You are about to embark on a wonderful journey of observing the dynamics

and impact of the interaction and interrelationship of people guided by the
Disciplines and Ideas of the Applied Social Sciences and relate or apply them to real
life situations and critical development areas. As you journey, this learner-friendly
module is provided for you to comprehend and appreciate the benefits of
communication in your day-to-day life especially in times of challenges and
struggles. This material allows you to value the importance of the processes of
communication in equipping yourself the strength and capacity to survive, overcome
and succeed over and across the difficulties in life.

Our objective is to make your journey meaningful and relevant for you as a
Senior High School student and to prepare you for your endeavor towards being a
functional and responsible citizen. While we help you achieve your goal for learning,
we also want you to enjoy this journey!

II – Learning Goals

At the end of the module, you should be able to:

Explain the effects of the various socio-economic factors

affecting business and industry

3
III - Let’s Find What You Know
Directions: Read the statements carefully and determine if it is TRUE or FALSE.
Write the term in the space provided before each number.

_______1. The first step to understanding what socioeconomic factors are is to

understand social economics.

_______2. Such things as ethics, social norms and different social philosophies have
no impact on how consumers behave in an economy and the eventual shape that
economy will take.

_______3. The study of social economics seeks to predict what kind of results to
expect when the society has been changed. It does this by studying politics, history
and other social sciences.

_______4. Socioeconomic factors are, therefore, the social and economic factors
that destroy or hamper and does not determine the dynamics a society will
experience.

_______5. Understand the socioeconomic factors affecting business will help you
make better decisions about the future and direction of your business.

_______6. To have an intimate understanding, however, you need to really

understand both external and environmental factors, as well as how their interplay
affects your business.

_______7. Exchange rates, interest rates, recession, inflation, taxes, and demand
and supply cannot be considered as socio-economic factors that affect business and
industry.

_______8. Socio-economic factors are an essential part of all business analysis and
these are the main factors considered when a company makes financial decisions.

_______9. Whenever an economy faces a recession, it has the potential to change

the attitude taken by consumers toward their purchasing decisions.

______10. When exchange rates fluctuate, they will not affect the ability of a
company to pay its international suppliers in a satisfactory manner. This can also
affect the profit margin of the company, as well as the amount of resources it needs
to stay afloat.

IV – Let’s Talk About It

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Learning Task No.1: TALKING TO KNOW
Directions: Read the brief discussion of the content of this lesson and accomplish
the learning activity that follows.

EFFECTS OF THE VARIOUS SOCIO-ECONOMIC FACTORS

AFFECTING BUSINESS AND INDUSTRY
The first step to understanding what socioeconomic factors are is to
understand social economics. This is a specialized branch of economics that
concerns itself with studying the intimate relationship between economics and social
behavior. Such things as ethics, social norms and different social philosophies have
an impact on how consumers behave in an economy and the eventual shape that
economy will take. The study of social economics seeks to predict what kind of
results to expect when the society has been changed. It does this by studying
politics, history and other social sciences.

Socioeconomic factors are, therefore, the social and economic factors that
shape and determine the dynamics a society will experience. These are factors that
affect the behavior of a particular group, also known as a socioeconomic class.
Perhaps the most interesting behavior of members of a socioeconomic class is their
behavior as consumers. Different socioeconomic classes will generally have different
priorities, and this will affect how they spend their money.

How Do Socioeconomic Factors Affect Businesses?

Understand the socioeconomic factors affecting business will help you make
better decisions about the future and direction of your business. To have an intimate
understanding, however, you will have to understand both external and
environmental factors, as well as how their interplay affects your business.

Socio-economic factors are an essential part of all business analysis, no

matter whether it is PEST analysis, PESTLE analysis, or any other kind of business
analysis. These are the main factors considered when a company makes financial
decisions. These factors are connected to money, goods and services. They affect
businesses on a micro-level, but they are a lot more powerful than that – they also
affect the entire economy on a macro-level. The economy, whether a local economy
or a global one, will pretty much be the determining factor in the details associated
with the operation of a company, such as the value of its assets, consumer demand
and even taxes.

Some socio-economic factors you must think about in your business include
exchange rates, interest rates, recession, inflation, taxes, and demand and supply.
Here is a closer look into three of these factors and their connection to businesses:
Interest Rates

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 Interest rates are everywhere, and are imposed by many different people. In fact,
banking institutions are obsessed with knowing what the status for interest rates in
the economy is for a good reason. It is how they determine their lending practices. It
is also good information for a company that relies on debt capital to finance
ambitious projects.

Exchange Rates
This is a slightly more nuanced topic than that of interest rates. At the heart of it,
exchange rates are an important factor to consider for any business involved in
importation and exportation of various goods and services. When exchange rates
fluctuate, they affect the ability of a company to pay its international suppliers in a
satisfactory manner. This can also affect the profit margin of the company, as well as
the amount of resources it needs to stay afloat.

Recession
Whenever an economy faces a recession, it has the potential to change the attitude
taken by consumers toward their purchasing decisions. This may force companies to
drop prices to stay afloat.

Now that you have fully absorbed and understand the processes of communication,
accomplish the next activity to deepen your analysis of the content.

V – Let’s Know It
Learning Task No.2: KNOW ME CORRECTLY
Directions: Determine what Effect of Applied Social Science Processes is being
described or defined in each statement by writing the letter that represent each
effect.

EFFECTS OF VARIOUS
SOCIO-ECONOMIC
STATEMENTS FACTOR TO BUSINESS
AND INDUSTRY?

Yes No
1. Understand the socioeconomic factors affecting
business will help you make better decisions about
the future and direction of your business.

2. To have an intimate understanding, however, you will

have to understand both external and environmental

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factors, as well as how their interplay shall never affect
your business.

3. Socio-economic factors are an non-essential part of

all business analysis and they affect businesses on a
micro-level, but they are a lot more powerful than that –
they also affect the entire economy on a macro-level.

4. The economy, whether a local economy or a global

one, will pretty much be the determining factor in the
details associated with the operation of a company,
such as the value of its assets, consumer demand and
even taxes.

5. Some socio-economic factors you must think about in

your business include exchange rates, interest rates,
recession, inflation, taxes, and demand and supply.

6. Interest rates are only selected somewhere, and

are imposed by many different people. In fact, banking
institutions are obsessed with knowing what the status
for interest rates in the economy is for a good reason.

7. It is how they determine their lending practices. It is

also good information for a company that relies on
debt capital to finance ambitious projects.

8. Exchange rate is a slightly more nuanced topic than

that of interest rates. At the heart of it, exchange rates
are not an important factor to consider for any
business involved in importation and exportation of
various goods and services.

9. When exchange rates fluctuate, they affect the

ability of a company to pay its international suppliers
in a satisfactory manner. This can also affect the profit
margin of the company, as well as the amount of
resources it needs to stay afloat.

10. Whenever an economy faces a recession, it has

the potential to change the attitude taken by
consumers toward their purchasing decisions. This may
force companies to drop prices to stay afloat.

Learning Task No.3: MAKE ME A CONVERSATION

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Directions: Create a conversation of the two students as show below. Make sure to
cover and emphasize the importance of understanding the Effects of the Various
Socio-Economic Factors Affecting Business and Industry.

This is an illustrated picture

VII – Let’s Think Deep

Learning Task No.4: CHALLENGES AND SOLUTIONS
Directions: Go back to the previous activities and then, give one possible challenge
that may negate or cause failure to achieve them, its effect and how would you solve
or prevent them. Complete the flow chart by providing required information.

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EFFECTS OF VARIOUS SOCIO-ECONOMIC FACTORS AFFECTING
BUSINESS AND INDUSTRY

POSSIBLE
POSSIBLE
EFFECT SOLUTION /
CHALLENGE PREVENTION

1.

2.

PROCESS QUESTIONS:

1. Why did you come up with those challenges?

2. What do the effects of these challenges will bring to the effects of various socio-
economic factors affecting business and industry?

3. Why do you agree or disagree on the possible solutions or preventions?

4. Based on the information you have provided in the flow chart, how can
these things will help you as a person and as a student?

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 VIII – Let’s Ponder

Learning Task No.5: NOW I KNOW

Directions: Provide appropriate and relevant statements asked in a each box. Write
your answers in a separate sheet of paper.

After reaching this point of your learning experience, try to revisit the preceding
activities to organize, link and form the essential ideas.

Applied Social Sciences is __________________________________________

Effects of Applied Social Sciences Processes to Individuals, Groups and Societies

are enumerated as ________________________________________________

IT’S HARVEST TIME I WOKE UP LIKE THIS

Task: At the count of 3-2-1 Task: Send to many!

Let us check the level of your Kodus! For you have succeeded in
understanding this journey and learning experience.

You will take the returns of your

investment in this learning process
Top 3 things I learned today
by becoming a functional and
1. ____________________________
responsible citizen of our society.
2. ____________________________
3. ____________________________
Kindly share to us your learning by
completing the thoughts below:
Top 2 that attracted my attention
1. _____________________________
2. _____________________________ I have discovered that _____________

I have realized that _______________

Top 1that I wanted to learn more
1. _____________________________ I will apply ____________________

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IX – Let’s Check It

Directions: Read the statements carefully and determine if it is TRUE or FALSE.

Write the term in the space provided before each number.

_______1. To have an intimate understanding, however, you need to really

understand both external and environmental factors, as well as how their interplay
affects your business.

_______2. Exchange rates, interest rates, recession, inflation, taxes, and demand
and supply cannot be considered as socio-economic factors that affect business and
industry.

_______3. Socio-economic factors are an essential part of all business analysis and
these are the main factors considered when a company makes financial decisions.

_______4. Whenever an economy faces a recession, it has the potential to change

the attitude taken by consumers toward their purchasing decisions.

______5. When exchange rates fluctuate, they will not affect the ability of a company
to pay its international suppliers in a satisfactory manner. This can also affect the
profit margin of the company, as well as the amount of resources it needs to stay
afloat.

_______6. The first step to understanding what socioeconomic factors are is to

understand social economics.

_______7. Such things as ethics, social norms and different social philosophies have
no impact on how consumers behave in an economy and the eventual shape that
economy will take.

_______8. The study of social economics seeks to predict what kind of results to
expect when the society has been changed. It does this by studying politics, history
and other social sciences.

_______9. Socioeconomic factors are, therefore, the social and economic factors
that destroy or hamper and does not determine the dynamics a society will
experience.

_______10. Understand the socioeconomic factors affecting business will help you
make better decisions about the future and direction of your business.

11
 References

(n.d.). Dictionary by Merriam-Webster: America's most-trusted online dictionary.

Retrieved from https://www.merriam-webster.com/dictionary

The Socioeconomic Factors Affecting Small Businesses | Small Business -

Chron.com

Answer Key

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