Answer :
Answer:
Economic value is the measurement of the benefit derived from a good or service to an individual or a company. Economic value can also be the maximum price or amount of money that someone is willing to pay for a good or service. As a result, economic value can be higher than market value.
Answer:
The economic values of a company to a community can be significant and multifaceted. Here are some key aspects:
1. **Employment Opportunities**:
- Companies create jobs, reducing unemployment and providing residents with stable incomes.
- Diverse roles from entry-level to skilled positions cater to a wide range of the workforce.
2. **Economic Growth**:
- Companies contribute to the local economy by stimulating economic activities through business operations, investments, and infrastructure development.
- Local suppliers and service providers benefit from business contracts and partnerships.
3. **Tax Revenue**:
- Businesses pay taxes which fund public services such as schools, hospitals, and infrastructure projects, enhancing the quality of life in the community.
4. **Skill Development**:
- Companies often invest in training and development for their employees, which can increase the skill level of the local workforce.
- This investment can make the community more attractive to other businesses, further boosting economic growth.
5. **Innovation and Technology Transfer**:
- Companies can introduce new technologies and innovative practices to the community, fostering a culture of innovation.
- This can lead to further business opportunities and modernization of local industries.
6. **Community Development**:
- Many companies engage in Corporate Social Responsibility (CSR) activities, contributing to local community projects, education, health, and welfare programs.
- This can improve social infrastructure and community well-being.
7. **Local Investment**:
- Companies often invest in local real estate and infrastructure, enhancing property values and local amenities.
- Such investments can also lead to urban development and better facilities for residents.
8. **Supply Chain Impact**:
- The presence of a company can create a ripple effect, supporting a network of local suppliers and small businesses.
- This multiplier effect boosts economic activity throughout the community.
9. **Enhanced Standard of Living**:
- With better job opportunities, skill development, and higher income levels, the standard of living within the community can improve.
- Increased disposable income among residents can lead to greater spending on local goods and services, further stimulating the local economy.
10. **Social Capital**:
- Businesses can foster a sense of community through partnerships, sponsorships, and local engagement initiatives.
- This can lead to stronger community ties and a more cohesive society.
By contributing to these areas, companies can play a vital role in enhancing the economic prosperity and overall quality of life in the communities where they operate.