Tag Archives: basic

Demi’s Basic Business Questions: What is Commercial Awareness?

This week instead of looking to myself for the answer to your questions, I looked to you for the answer to the meaning of Commercial Awareness. Commercial awareness is a phrase I’ve been seeing lately all over commercial law applications and all over financial and professional services sectors too. My idea of commercial awareness has always been wishy-washy and recently I’ve wanted to gain a more succinct definition.

To achieve my objective, I asked a few students from Trinity and UCD how they would define commercial awareness. 

I spoke to students from business backgrounds who gave exhaustive responses:

 “Being cognisant of the way businesses operate and affect our lives and how we affect businesses” (1st Year BESS), 

“..being able to tack together different current affair stories and making real sense of them for your industry,” (2nd Year Law and Business)

“..understanding the external environment that impacts the specific industry, i.e the Political. Economic, Social, Technological, Legal and Environmental factors (PESTLE)..” (1st Year Global Business)

I also spoke to law students like myself, who kept things short and simple:

“..an understanding of how businesses work”

“Knowledge of a business or company, which is important if you want to get recruited by that company!”

I spoke to older students whose responses were.. interesting, to say the least:

“It means being aware, commercially of course.” (3rd Year Biomedical Sciences)

“Being able to tell the difference between all the ads or commercials on TV” (3rd Year Children’s and General Nursing)

Not only was I able to get student insight, I was able to get some industry perspective on commercial awareness too. My application for Legal Cheek’s Commercial Awareness Question Time with Matheson, Barbri, Pinsent Masons and Arthur Cox was successful so I was invited to attend the event at the Law Society.

The Commercial Awareness Question Time taught me the wide range of issues that commercial awareness encompasses. It ranges from having an in-depth knowledge of what the implications of Brexit are on the legal sector to knowing that a company is a brand that has to sell and distinguish itself from competitors. 

Nearing the end of my search for “commercial awareness”, I’ve come to the realization that commercial awareness is as broad or as succinct a definition as we want it to be. It really is as simple as taking a little time out of your week to become “..aware, commercially of course” by following some financial institutions, newspapers or even keeping up with my Basic Business Questions.

If you have any more Basic Business Questions you are interested in me tackling, please do not hesitate to email me at dadenira@tcd.ie

Yours in Learning,

Demilade

Demi’s Basic Business Questions: Why Can’t We Just Print More Money?

Money makes the world go round. The converse is also true. Lack of money can make the world stop. This is the reality for many – their worlds are at a standstill because of a lack of money. Because of poverty.

Ending poverty is one of the United Nations’ Sustainable Development Goals to be achieved by 2030. According to the UN, 700 million people live in extreme poverty. Sometimes, grave situations like these cause business newbies like myself to ask the question, “Why can’t we just print more money?”. Unfortunately the solution is not that simple.

Printing more money may be a possible quick fix, but it is only sustainable temporarily. Printing more money can make poor countries even poorer in the long run.

Money is worth the value we give it. If people didn’t believe money to be valuable and accept it in exchange for goods and services, it would simply be like another piece of paper.

Inflation refers to a general increase in the price level of goods and services. This can be caused by increased money in circulation or by people’s incomes rising. The more money readily available, the easier it is to buy things and the more people will want to buy things. Businesses are profit driven and will increase their prices as people can now afford to pay more while not increasing their supply . This is the law of demand – as price increases, demand decreases. More money does not mean less problems, more money simply translates to higher prices. 

We are not the only ones who have flirted with this idea of printing more money in order to increase the standard of living. In order to fulfill the payment of reparations after the war that had made them poor, Germany in 1922 printed money. On the surface it seemed like an excellent idea. In reality, however, they could not have been more wrong. This led to hyper inflation, meaning prices were so inconceivably high that money became next to worthless. It was not uncommon for people to use their money to burn fires. 

Poverty is a pressing issue and it is imperative that we continue to generate solutions on how to tackle it. Unfortunately, money printing is not the one for us today. 

If you have any more Basic Business Questions you are interested in me tackling, please do not hesitate to email me at dadenira@tcd.ie

Yours in Learning,

Demilade